National Insurance Contributions

Class 1 Employees Not Contracted-Out of State Second Pension (S2P)
  2007/08 2006/07
  Employee Employer Employee Employer
NIC rate 11% 12.8% 11% 12.8%
No NICs on the first £100 pw £100 pw £97 pw £97 pw
NICs charged up to £670 pw No Limit £645 pw No Limit
1% NIC on earnings over £670 pw N/A £645 pw N/A
Certain married women 4.85% 12.8% 4.85% 12.8%
 
Contracted-out Rebate 2007/08 2006/07
Rebate on £87.01 - £670 pw £84.01 - £645 pw
Salary-related scheme 1.6% 3.7% 1.6% 3.5%
Money-purchase scheme 1.6% 1.4% 1.6% 1.0%
Personal Pension No reduction No reduction
 
Class 1A Employer 2006-08 on car fuel benefits and most other taxable benefits: 12.8%
 
Limits and Thresholds 2007/08 2006/07
Weekly Monthly Annual Weekly Monthly Annual
Lower earnings limit £87 £377 £4,524 £84 £364 £4,368
NICs start £100 £435 £5,225 £97 £420 £5,035
Upper earnings limit £670 £2,904 £34,840 £645 £2,795 £33,540
Low earnings threshold – S2P     £13,000     £12,500
 
Self-employed 2007/08 2006/07
Class 2 Flat rate £2.20 pw   £114.40 pa £2.10 pw   £109.20 pa
if earnings over £4,635 pa £4,465 pa
Class 4*
 On profits £5,225 - £34,840 pa: 8% £5,035 - £33,540 pa: 8%
  Over £34,840 pa: 1% Over £33,540 pa: 1%

*Unless over state pension age on 6 April
 
Voluntary      
Class 3 Flat rate £7.80 pw  £405.60 pa £7.55 pw  £392.20 pa

© Copyright 21 March 2007, subject to Finance Act 2007. For information only. Always seek professional advice before acting.