National Insurance Contributions
The following table shows the National Insurance Contributions for 2008/2009
| Item | 2007/2008 | 2008/2009 |
|
Lower Earning Limit, Primary Class 1 |
£87 per week |
£90 per week |
|
Upper Earning Limit, Primary Class 1 |
£670per week |
£770 per week |
|
Primary Threshold |
£100 per week |
£105 per week |
|
Secondary Threshold |
£100 per week |
£105 per week |
|
Employees’ Primary Class 1 Rate |
11% |
11% |
|
Employees’ Contracted-Out Rebate |
1.6% |
1.6% |
|
Married Woman’s Reduced Rate |
4.85% |
4.85% |
|
Employers’ Secondary Class 1 Rate |
12.8% |
12.8% |
|
Employers’ contracted-out rebate, salary-related schemes |
3.7% |
3.7% |
|
Employers’ contracted-out rebate, money-purchase schemes |
1.4% |
1.4% |
|
Class 2 rate |
£2.10 per week |
£2.20 per week |
|
Class 2 small earnings exception |
£4,635 per year |
£4,825 per year |
|
Special Class 2 rate for share fishermen |
£2.85 per week |
£2.95 per week |
|
Special Class 2 rate for volunteer development workers |
£4.35 per week |
£4.50 per week |
|
Class 3 rate |
£7.80 per week |
£8.10 per week |
|
Class 4 lower profits limit |
£5,225 |
£5,435 |
|
Class 4 upper profits limit |
£34,840 |
£40,040 |
|
Class 4 rate |
8% of £5,225 to £33,540 per year. 1% above £33,540 per year |
8% of £5,435to £40,040 per year.
1% above £40,040 per year |
If you have any questions about National Insurance Contributions (regarding yourself, new or existing employees), visit the HMRC National Insurance FAQ page to help. The following questions can be answered:
- When do I have to start deducting NICs from my employee’s wages?
- When do I calculate the NICs due?
- Where do I send the money ?
- When must I send it ?
- What detailed information/ help is available to help me get the National Insurance correct?
- How long do I need to keep payroll records for?
- Do I complete two P14s for the same employee if they worked for me at the start of the year, left and then came back again ?
- I pay my employee calendar monthly but they will reach State Retirement Pension age during the month. Which category of National Insurance do I charge ?
- How Will I Know My Employee’s NI Numbe r?
- My Employee Has An NI Number But Can’t Remember It
- What if I Still Can’t Find It ?
- NI Number Tracing Service
Relevant Articles
- Related Articles
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- National Insurance Contributions for Company Directors
- National Insurance Contributions 2004/2005
- National Insurance contributions (NICs) holiday scheme to encourage new business start-ups in key UK regions launched
- NIC - National Insurance Contribution Help for Service Businesses
- Combined Insurance & Home Office Insurance
