22 March 2006 Budget Report

National Insurance Contributions

2006/07 National Insurance Contributions (NICs)
		Employer	Employee
Class 1 - not contracted out
Lower earnings limit			£84
Weekly earnings bands payable on earnings
Up to £97		Nil	Nil
£97.01 - £645		12.8%	11%
Over £645		12.8%	1%
Men 65 and over and women 60 and over		as above	Nil
Class 1A	On relevant benefits	12.8%	Nil
Class 2	Self employed	£2.10 per week
	Limit of net earnings for exception	£4,465 p.a.
Class 3	Voluntary	£7.55 per week
Class 4*	Self employed on profits
	£5,035 - £33,540	8%
	Excess over £33,540	1%
*Exemption applies if state retirement age was reached by 6 April 2006



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