HM Treasury’s United Kingdom Budget 2005

brought to you courtesy of Grant Thornton


brought to you courtesy of Grant ThorntonNational Insurance Contributions (NIC)

Class 1 employed
From 6 April 2005

Earnings per week

Not contracted out

Contracted out*

employer

employee

employer

employee

£

 

0-94.00

nil

nil

nil

nil

94.01-630.00

12.8%

11%

9.3%

9.4%

over 630.00

12.8%

1%

11.8%

1%

From 6 April 2004

Earnings per week Not contracted out Contracted out*
  employer employee employer employee
£  
0-91.00
nil
nil
nil
nil
91.01-610.00
12.8%
11%
9.3%
9.4%
over 610.00
12.8%
1%
12.8%
1%

* Different contracted out reductions apply in respect of contracted out money purchase schemes

Employer’s NIC of 12.8% applies to most income tax benefits

Note: employee’s rate for a married woman with a valid election 4.85% on earnings of £94.01-£630 (£91.01-£610 2004/2005) and 1% on earnings above £630 (£610 2004/2005)

Class 2 self-employed

2005/2006

2004/2005

Flat rate

£2.10 pw

£2.05 pw

Share fishermen

£2.75 pw

£2.70 pw

Volunteer development workers

£4.10 pw

£3.95 pw

Small earnings exception

£4,345 pa

£4,215 pa

Class 3 non-employed

Voluntary
£7.35 pw
£7.15 pw

Class 4 self-employed

Main rate on profit
8%
8%
Annual lower limit
£4,895
£4,745
Annual upper limit
£32,760
£31,720
Rate above upper limit
1%
1%

The figures shown here are subject to ammendment as the Finance Bill passes through Parliament.

This information has been prepared only as a topical guide to tax and personal financial matters. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material contained in this publication.

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