National Insurance Contributions
| Class 1 (Employees) Not Contracted out of State Second Pension S2P |
| 2010/11 |
2009/10 |
| Employee: |
Employee: |
No NICs where earnings
are up to £110 a week
11% NICs on £110.01-£844 a week
1% NICs over £844 a week |
No NICs where earnings
are up to £110 a week
11% NICs on £110.01-£844 a week
1% NICs over £844 a week |
| Employer: |
Employer: |
No NICs on the first £110 a week
12.8% NICs over £110 a week |
No NICs on the first £110 a week
12.8% NICs over £110 a week |
| Earnings limit or threshold |
2010/11 |
2009/10 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower limit (LEL) |
97 |
421 |
5,044
|
95 |
412 |
4,940 |
Earnings threshold
|
110 |
476 |
5,715 |
110 |
476 |
5,715 |
| Upper accrual point |
770 |
3,337 |
40,040 |
770 |
3,337 |
40,040 |
| Upper limit (UEL) |
844 |
3,656 |
43,875 |
844 |
3,656 |
43,875 |
| |
|
|
|
|
|
|
| Contracted-out S2P rebate |
2010/11 |
2009/10 |
| Reduction on band earnings |
£97.01-£770 pw |
£95.01-£770 pw |
| Employer rate reduction: |
|
|
|
3.7% |
3.7% |
|
1.4% |
1.4% |
| Employee rate reduction |
1.6%
|
1.6%
|
| |
|
|
| Class 1A (Employers) |
2010/11
|
2009/10 |
| Most taxable employee benefits |
12.8% |
12.8% |
| |
|
|
| Class 2 (Self-Employed) |
2010/11 |
2009/10 |
| Flat rate |
£2.40 pw
£124.80 pa |
|
Small earnings exception
|
£5,075 pa |
£5,075 pa |
| |
|
|
| Class 4 (Self-Employed) |
2010/11 |
2009/10 |
| On profits |
£5,715-£43,875 pa
8% |
£5,715-£43,875 pa
8% |
| |
Over £43,875 pa
1% |
Over £43,875 pa
1% |
| |
|
|
| Class 3 (Voluntary) |
2010/11 |
2009/10 |
| Flat rate |
£12.05 pw
£626.60 pa
|
£12.05 pw
£626.60 pa |
|
|
Chancellor’s Summer 2010 Budget Summary |
 |
|
|
|
|
|
|
|
|
|
|
|
 |
|
|
|
