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National Insurance Contributions 2004/2005

Last Updated
August 3, 2010

National Insurance Contributions

The following table shows the National Insurance Contributions for 2004/2005 (effective from April 2004) as announced in the Budget 2003.

Item 2004/2005

Lower Earning Limit, Primary Class 1

£79 per week

Upper Earning Limit, Primary Class 1

£595 per week

Primary Threshold

£89 per week

Secondary Threshold

£89 per week

Employees’ Primary Class 1 Rate

11% of £89.01 to £595 per week.

1% above £595 per week

Employees’ Contracted-Out Rebate

1.6%

Married Woman’s Reduced Rate

4.85% of £89.01 to £595 per week.

1% above £595 per week

Employers’ Secondary Class 1 Rate

12.8% above £89 per week

Employers’ contracted-out rebate, salary-related schemes

3.5%

Employers’ contracted-out rebate, money-purchase schemes

1.0%

Class 2 rate

£2.00 per week

Class 2 small earnings exception

£4,095 per year

Special Class 2 rate for share fishermen

£2.65 per week

Special Class 2 rate for volunteer development workers

£3.85 per week

Class 3 rate

£6.95 per week

Class 4 lower profits limit

£4,615 per year

Class 4 upper profits limit

£30,940 per year

Class 4 rate

8% of £4,615 to £30,940 per year.

1% above £30,940 per year

I f you have any questions about National Insurance Contributions (regarding yourself, new or existing employees), visit the Inland Revenue 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 N ICs 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 Number ?
  • My Employee Has An NI Number But Can’t Remember It
  • What if I Still Can’t Find It?
  • NI Number Tracing Service

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