National Insurance Contributions

Class 1 Employees Not Contracted-Out of State Second Pension (S2P)
  09-10 08-09
  Employee Employer Employee Employer
NIC rate 11% 12.8% 11% 12.8%
No NICs on the first £110pw £110pw £105pw £105pw
NICs charged up to £844pw No limit £770pw No limit
1% NIC on earnings over £844pw N/A £770pw N/A
Certain married women 4.85% 12.8% 4.85% 12.8%
 
Contracted-out rebate 09-10 08-09
Rebate on £95.01 – £770 pw £90.01 - £770 pw
Salary-related scheme 1.6% 3.7% 1.6% 3.7%
Money-purchase scheme 1.6% 1.4% 1.6% 1.4%
Personal pension No reduction No reduction
 
Class 1A Employer 2008-10 on car and fuel benefits and most other taxable benefits: 12.8%
 
Limits and Thresholds 09-10 08-09
Weekly Monthly Annual Weekly Monthly Annual
Lower earnings limit £95 £412 £4,940 £90 £390 £4,680
Earnings threshold £110 £476 £5,715 £105 £453 £5,435
Upper accrual point £770 £3,337 £40,040 N/A N/A N/A
Upper earnings limit £844 £3,656 £43,875 £770 £3,337 £40,040
 
Self-employed 09-10 08-09
Class 2 Flat rate £2.40 pw £124.80 pa £2.30 pw   £119.60 pa
Small earnings exception £5,075 pa £4,825 pa
Class 4*
 On profits £5,715 – £43,875 pa: 8% £5,435 - £40,040 pa: 8%
  Over £43,875 pa:       1% Over £40,040 pa: 1%

*Unless over state pension age on 6 April
 
Voluntary      
Class 3 Flat rate £12.05 pw £626.60 pa £8.10 pw £421.20 pa

© Copyright 22nd April 2009, subject to Finance Act 2009. For information only. Always seek professional advice before acting.