Budget 2004

Grant Thornton


Miscellaneous

Grant Thornton

National Insurance Contributions (NIC)

Class 1 employed
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%

11.8%

1%

From 6 April 2003

Earnings per week Not contracted out Contracted out*
  employer employee employer employee
£  
0-89.00
nil
nil
nil
nil
89.01-595.00
12.8%
11%
9.3%
9.4%
over 595.00
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% (11.8% 2002/2003) applies to most income tax benefits

Note: employee’s rate for a married woman with a valid election 4.85% (4.85% 2003/2004) on earnings of £91.01-£610 (£89.01-£585 2003/2004) and 1% (1% 2003/2004) on earnings above £610 (£595 2003/2004)

Class 2 self-employed

2004/2005

2003/2004

Flat rate

£2.05 pw

£2.00 pw

Share fishermen

£2.70 pw

£2.65 pw

Volunteer development workers

£3.95 pw

£3.85 pw

Small earnings exception

£4,215 pa

£4,095 pa

Class 3 non-employed

Voluntary
£7.15 pw
£6.95 pw

Class 4 self-employed

Main rate on profit
8%
8%
Annual lower limit
£4,745
£4,615
Annual upper limit
£31,720
£30,920
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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