|
Page 21 of 37 
Budget 2008
National Insurance Contributions (NIC)
Class 1 employed
From 6 April 2008
| Earnings per week £ |
Not contracted out |
Contracted out* |
|
employer |
employee |
employer |
employee |
| 0-105.00 |
nil |
nil |
nil |
nil |
| 105.01-670.00 |
12.8% |
11% |
9.1% |
9.4% |
| over 770.00 |
12.8% |
1% |
12.8% |
1% |
From 6 April 2007 to 5 April 2008
| Earnings per week £ |
Not contracted out |
Contracted out1 |
| |
employer |
employee |
employer |
employee |
| 0-100.00 |
nil |
nil |
nil |
nil |
| 100.01-670.00 |
12.8% |
11% |
9.3% |
9.4% |
| over 670.00 |
12.8% |
1% |
12.8% |
1% |
- Employer’s NIC of 12.8% applies to most income tax benefits.
- Employee’s rate for a married woman with a valid election 4.85% on earnings of £105.01 - £770.00 (£100.01 - £670 2007/2008) and 1% on earnings above £770 (£670 2007/2008).
1 Employer’s contribution rate of 11.4% (11.8% 2006/2007) in respect of money purchase schemes.
Class 2 self-employed
| |
2008/2009 |
2007/2008 |
| Flat rate |
£2.30 pw |
£2.20 pw |
| Share fishermen |
£2.95 pw |
£2.85 pw |
| Volunteer development workers |
£4.50 pw |
£4.35 pw |
| Small earnings exception |
£4,825 pa |
£4,635 pa |
Class 3 Voluntary
| |
2008/2009 |
2007/2008 |
| Flat Rate |
£8.10 pw |
£7.80 pw |
Class 4 self-employed
|
2008/2009 |
2007/2008 |
| Main rate on profit |
8% |
8% |
| Annual lower limit |
£5,435 |
£5,225 |
| Annual upper limit |
£40,040 |
£34,840 |
| Rate above upper limit |
1% |
1% |
|
Business Advice