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

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

2010/11 2009/10
Reduction on band earnings £97.01 - £770 pw £95.01 - £770 pw
Employer rate reduction:    
- Salary-related scheme 3.7%
3.7
- Money-purchase scheme 1.4%
1.4%
Employee rate reduction: 1.6%
1.6%


Class 1A (Employers) 2010/11

2010/11 2009/10
Employee rate reduction: 12.8%
12.8%


Class 2 (Self-Employed)

2010/11 2009/10
Flat rate: £2.40 pw
£124.80 pa
£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 £5,715 - £43,875 pa
Small earnings exception: £5,075 pa
8%
£5,075 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


Class 1A Employer 2008-10 on car and fuel benefits and most other taxable benefits:

12.8%


Limits and Thresholds

2009/10 2008/9
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
UpperEarnings Limit: £844 £3,656 £43,875 £770 £3,337 £43,875


Self-employed

2009/10 2008/9
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 £43,875 pa:
1%
*Unless over state pension age on 6 April


Voluntary

2009/10 2008/9
Class 3: Flat Rate £12.05 pw
£626.60 pa
£8.10 pw
£421.20 pa