National Insurance Contributions
| Class 1 (Employees) |
| |
Contracted In |
Contracted Out |
| |
|
Salary Related |
Money Purchase |
| Employee contributions |
|
|
|
| - on earnings £139.01 - £770pw |
12.0% |
10.4% |
10.4% |
| - on earnings £770.01 - £817pw |
12.0% |
12.0% |
12.0% |
| - on earnings above £817pw |
2.0% |
2.0% |
2.0% |
| Employer contributions |
|
|
|
| - on earnings £136.01 - £770pw |
13.8% |
10.1% |
12.4% |
| - on earnings above £770pw |
13.8% |
13.8% |
13.8% |
| Employer contributions (at 13.8%) are also due on most taxable benefits and on tax paid on an employee's behalf under a PAYE settlement agreement. |
| |
| Class 2 (Self-employed) |
| Flat rate per week |
£2.50 |
| Small earnings exception: profits per annum |
£5,315 |
| |
| Class 3 (Voluntary) |
| Flat rate per week |
£12.60 |
| |
| Class 4 (Self-employed) |
| On profits £7,225 - £42,475 |
9.0% |
| On profits over £42,475 |
2.0% |
| From September 2010, there is a "holiday" from employer's NIC for new businesses employing up to 10 new employees (including directors) in their first year. The maximum benefit is £5,000 per employee. Businesses in certain areas, such as London and the SE, are excluded. |
|
