National Insurance Contributions

Class 1 Employees Not Contracted-Out of State Second Pension (S2P)
  2008/09 2007/08
  Employee Employer Employee Employer
NIC rate 11% 12.8% 11% 12.8%
No NICs on the first £105pw £105 pw £100 pw £100 pw
NICs charged at 11%/12.8% up to £770 pw No Limit £670 pw No Limit
1% NIC on earnings over £770 pw N/A £670 pw N/A
Certain married women 4.85% 12.8% 4.85% 12.8%
 
Contracted-out Rebate 2008/09 2007/08
Rebate on £90.01 - £770 pw £87.01 - £670 pw
Salary-related scheme 1.6% 3.7% 1.6% 3.7%
Money-purchase scheme 1.6% 1.4% 1.6% 1.4%
Personal Pension No reduction No reduction
 
Class 1A Employer 2007-09 on car fuel benefits and most other taxable benefits: 12.8%
 
Limits and Thresholds 2008/09 2007/08
Weekly Monthly Annual Weekly Monthly Annual
Lower earnings limit £90 £390 £4,680 £87 £377 £4,524
NICs start £105 £453 £5,435 £100 £435 £5,225
Upper earnings limit £770 £3,337 £40,040 £670 £2,904 £34,840
 
Self-employed 2008/09 2007/08
Class 2 Flat rate £2.30 pw   £119.60 pa £2.20 pw   £114.40 pa
if earnings over £4,825 pa £4,635 pa
Class 4*
 On profits £5,435 - £40,040 pa: 8% £5,225 - £34,840 pa: 8%
  Over £40,040 pa: 1% Over £34,840 pa: 1%

*Unless over state pension age on 6 April
 
Voluntary      
Class 3 Flat rate £8.10 pw  £421.20 pa £7.80 pw  £405.60 pa

© Copyright 12 March 2008, subject to Finance Act 2008. For information only. Always seek professional advice before acting.