Tax Rates & Allowances - National Insurance Contributions
This information is prepared for guidance only. We recommend that you contact us for advice before acting on any information contained on this page and we cannot accept responsibility for any action taken without such advice.
National Insurance Contributions 2011/12
| 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. |
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