National Insurance Contributions

Table D - Rates and Limits for 2007/08

Class 1

Weekly
Monthly
Yearly

Primary threshold - employees
£100
£435
£5,225

Upper earnings limit - employees
£670
£2,903
£34,840

Secondary threshold - employees
£100
£435
£5,225

Employer's Contribution

contracted in
Contracted out
 

 

 

Salary related scheme

Money purchase scheme

On earnings up to threshold

Nil

Nil

Nil

On earning between threshold and upper earnings limit

12.8%

9.1%

11.4%

On earnings above upper earnings limit

12.8%

12.8%

12.8%
Employee's Contribution

Contracted in: 11% on earnings between lower and upper limits, 1% above upper limit.
Contracted out: 9.4% on earnings between lower and upper limits, 1% above upper limit.

Earnings over £87 pw qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings exceed £100 per week.

The reduced Class 1 rate payable by certain married women and widows rises to 4.85% for earnings between £100 and £670 per week, 1% above £670 per week.

Class 2 (Self-employed)

 Earnings over £4,635 per year
£2.20 per week

Class 3 (Voluntary)

 No limit applicable
£7.80 per week

Class 4 (Self-employed)

 Profits between £5,225 and £34,840
8%
 
 Profits above £34,840
1%

 

 
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