National insurance contributions
| Class 1 (Employees) |
| Not Contracted
out of State Second Pension S2P |
| 2009/10 |
2008/09 |
| Employee |
Employee |
No NICs where earnings
are up to £110 a week
11% NICs on £110.01-£844 pw
1% NICs over £844 pw |
No NICs where earnings
are up to £105 a week
11% NICs on £105.01-£770 pw
1% NICs over £770 pw |
| Employer |
Employer |
No NICs on the first £110
pw
12.8% NICs over £110 pw |
No NICs on the first £105
pw
12.8% NICs over £105 pw |
| Earnings limit
or threshold |
2009/10 |
2008/09 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower limit (LEL) |
95 |
412 |
4,940 |
90 |
390 |
4,680 |
| NICs start |
110 |
476 |
5,715 |
105 |
453 |
5,435 |
| Upper accrual point |
770 |
3,337 |
40,040 |
N/A |
N/A |
N/A |
| Upper limit (UEL) |
844 |
3,656 |
43,875 |
770 |
3,337 |
40,040 |
| Contracted-out S2P rebate |
2009/10 |
2008/09 |
|
| Reduction on band earnings |
£95.01-£770
pw |
£90.01-£770
pw |
|
| Employer rate reduction |
|
|
|
|
3.7% |
3.7% |
|
|
1.4% |
1.4% |
|
| Employee rate reduction |
1.6% |
1.6% |
|
| Class 1A (Employers) |
2009/10 |
2008/09 |
|
| Most taxable employee benefits |
12.8% |
12.8% |
|
| |
|
|
|
| Class 2 (Self-Employed) |
2009/10 |
2008/09 |
|
| Flat rate |
£2.40 pw £124.80
pa |
£2.30 pw £119.60
pa |
|
| If earnings over |
£5,075 pa |
£4,825 pa |
|
| Class 4 (Self-Employed) |
2009/10 |
|
2008/09 |
|
| On profits |
£5,715-£43,875
pa |
8% |
£5,435-£40,040
pa |
8% |
| |
Over £43,875
pa |
1% |
Over £40,040
pa |
1% |
| Class 3 (Voluntary) |
2009/10 |
2008/09 |
| Flat rate |
£12.05pw £626.60
pa |
£8.10pw £421.20
pa |
|
|
|
