National Insurance Contributions

2008-2009 2007-2008

Employees Class 1 NIC
Earnings at or above lower limit

Standard rate

contracted in
contracted out

contracted in & out

 Earnings pw






0% up to £105
11% on £105.01-£770
9.4% on £105.01-£770
1% over £770		 Earnings pw






0% up to £100
11% on £100.01-£670
9.4% on £100.01-£670
1% over £670
Employers Class 1 NIC
Contracted in
Below £105/£100
Over £105/£100


Contracted out *
Below £105/£100
Over £105/£100
Over £770/£670


NIL
12.8%



SR MP
NIL NIL
9.1% 11.4% 12.8% 12.8%


NIL
12.8%



SR MP
NIL NIL
9.1% 11.4% 12.8% 12.8%

Class 2- Self employed rate
Small earnings exception		 £2.30 per week
£4,825 per annum		 £2.20 per week
£4,635 per annum
Class 3 - Voluntary rate £8.10 per week £7.80 per week
Class 4 - Self employed rate

Lower limit of earnings

Upper limit of earnings

1% on earnings over


8%



£5,435 per annum

£40,040 per annum


£40,040 per annum


8%




£5,225 per annum


£34,840 per annum


£34,840 per annum

Notes

SR = Salary related scheme MP = Money purchase scheme