HM Treasury’s United Kingdom Budget 2007

Grant Thornton

Grant Thornton

National Insurance Contributions (NIC)

Class 1 employed

From 6 April 2007

Earnings per week

Not contracted out

Contracted out*

employer

employee

employer

employee

£

 

0-100.00

nil

nil

nil

nil

100.01-670.00

12.8%

11%

9.1%

9.4%

over 670.00

12.8%

1%

12.8%

1%

From 6 April 2006 to 5 April 2007

Earnings per week Not contracted out Contracted out1
  employer employee employer employee
£  
0-97.00 nil nil nil nil
97.01-645.00 12.8% 11% 9.3% 9.4%
over 645.00 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 £100.01 – £670.00 (£97.01 – £645 2006/2007) and 1% on earnings above £670 (£645 2006/2007).

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

Class 2 self-employed

 

2007/2008

2006/2007

Flat rate

£2.20 pw

£2.10 pw

Share fishermen

£2.85 pw

£2.75 pw

Volunteer development workers

£4.35 pw

£4.20 pw

Small earnings exception

£4,635 pa

£4,465 pa

Class 3 Voluntary

Flat Rate
£7.80 pw
£7.55 pw

Class 4 self-employed

Main rate on profit 8% 8%
Annual lower limit £5,225 £5,035
Annual upper limit £34,840 £33,540
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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