Budget 2008

National Insurance Contributions (NIC) - GT

National Insurance Contributions (NIC)

Class 1 employed

From 6 April 2008

Earnings per week £ Not contracted out Contracted out*
employer employee employer employee
0-105.00 nil nil nil nil
105.01-670.00 12.8% 11% 9.1% 9.4%
over 770.00 12.8% 1% 12.8% 1%

From 6 April 2007 to 5 April 2008

Earnings per week £ Not contracted out Contracted out1
  employer employee employer employee
0-100.00 nil nil nil nil
100.01-670.00 12.8% 11% 9.3% 9.4%
over 670.00 12.8% 1% 12.8% 1%
  • Employer’s NIC of 12.8% applies to most income tax benefits.
  • Employee’s rate for a married woman with a valid election 4.85% on earnings of £105.01 – £770.00 (£100.01 – £670 2007/2008) and 1% on earnings above £770 (£670 2007/2008).

1 Employer’s contribution rate of 11.4% (11.8% 2006/2007) in respect of money purchase schemes.

Class 2 self-employed

  2008/2009 2007/2008
Flat rate £2.30 pw £2.20 pw
Share fishermen £2.95 pw £2.85 pw
Volunteer development workers £4.50 pw £4.35 pw
Small earnings exception £4,825 pa £4,635 pa

 

Class 3 Voluntary

  2008/2009 2007/2008
Flat Rate £8.10 pw £7.80 pw

Class 4 self-employed

 

2008/2009

2007/2008

Main rate on profit 8% 8%
Annual lower limit £5,435 £5,225
Annual upper limit £40,040 £34,840
Rate above upper limit 1% 1%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

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