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National Insurance
National insurance contributions
£ per week (unless stated) |
2008-09 |
2009-10 |
|
Lower earnings limit, primary Class 1 |
£90 |
£95 |
|
Upper earnings limit, primary Class 1 |
£770 |
£844 |
|
Upper Accruals Point |
N/A | £770 |
|
Primary threshold |
£105 |
£110 |
|
Secondary threshold |
£105 |
£110 |
|
Employees’ primary Class 1 rate between primary threshold and upper earnings limit |
11% |
11% |
|
Employees’ primary Class 1 rate above upper earnings limit |
1% |
1% |
|
Employees’ contracted-out rebate - salary-related schemes |
1.6% |
1.6% |
|
Employees’ contracted-out rebate - money-purchase schemes |
1.6% |
1.6% |
|
Married women’s reduced rate between primary threshold and upper earnings limit |
4.85% |
4.85% |
|
Married women’s rate above upper earnings limit |
1% |
1% |
|
Employers’ secondary Class 1 rate above secondary threshold |
12.8% |
12.8% |
|
Employers’ contracted-out rebate, salary-related schemes |
3.7% |
3.7% |
|
Employers’ contracted-out rebate, money-purchase schemes |
1.4% |
1.4% |
|
Class 2 rate |
£2.30 |
£2.40 |
|
Class 2 small earnings exception (per year) |
£4,825 |
£5,075 |
|
· Special Class 2 rate for share fishermen |
£2.95 |
£3.05 |
|
Special Class 2 rate for volunteer development workers |
£4.50 |
£4.75 |
|
Class 3 rate (per week) |
£8.10 |
£12.05 |
|
Class 4 lower profits limit (per year) |
+£5,435 |
£5,715 |
|
Class 4 upper profits limit (per year) |
£40,040 |
£43,875 |
|
Class 4 rate between lower profits limit and upper profits limit |
8% |
8% |
|
Class 4 rate above upper profits limit |
1% |
1% |
As announced at the 2008 Pre-Budget Report the starting point for employers', employees' and self employed National Insurance Contributions (NICs) will increase in line with inflation to £110. The upper earnings and profits limits for Class 1 and Class 4 NICs respectively will increase from 2009 from £770 to £844 per week. For the self-employed, the rate of Class 2 contributions will increase to £2.40 a week.
