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> 12 March 2008 Budget Report > National Insurance Contributions
National Insurance Contributions
| Class 1 (not contracted out) |
Employer |
Employee |
| Lower earnings limit |
|
£90 |
| Payable on weekly earnings |
|
|
| £105.01 - £770 |
12.8% |
11% |
| Over £770 |
12.8% |
1% |
| Payable on monthly earnings |
|
|
| £453 - £3,337 |
12.8% |
11% |
| Over £3,337 |
12.8% |
1% |
Men 65 and over and
women 60 and over |
12.8% |
Nil |
| Employees' contracted-out rebate |
1.6% |
| Married women's reduced rate between £105 and £770 |
4.85% |
| Employers' contracted-out rebate, salary-related schemes |
3.7% |
| Employers' contracted-out rebate, money purchase schemes |
1.4% |
| |
|
| Class 1A (on relevant benefits) |
12.8% |
Nil |
| |
|
| Class 1B (on PAYE settlement arrangement) |
12.8% |
|
| |
|
| Class 2 (Self employed) |
£2.30 per week |
| Class 2 contributions - share fishermen |
£2.95 per week |
| Class 2 contributions - volunteer development workers |
£4.50 per week |
| Limit of net earnings for exception |
£4,825 per annum |
| |
|
| Class 3 (Voluntary) |
£8.10 per week |
| |
|
| Class 4 (* Self employed on profits) |
|
| £5,435 to £40,040 |
8% |
| Excess over £40,040 |
1% |
| *Exemption applies if state retirement age was reached by 6 April 2008. |
| |
|
| Maximum contributions |
|
| Class 1 or Class 1 & 2 |
£3,876.95 + 1% of earnings over £770 |
| Class 2 & Class 4 |
£2,890.30 + 1% of profits over £40,040 a year |
| |
|
| Self employed |
|
| Class 4 increase compared to 2007/08 (up to upper profits limit £347.20 (14.6%) |
For those earning between £90 per week and £770 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
For children under 16, men over 65 and women over 60 there are no employee national insurance contributions payable, but employers' contributions remain payable.
