National insurance contributions
(NICs) |
| Class 1 (Employees)
|
| Not Contracted
out of State Second Pension S2P |
| 2005/06 |
2004/05 |
| Employee |
Employee |
| No NICs where earnings are up to £94 a week
11% NICs on £94.01-£630 a week
1% NICs over £610 a week |
No NICs where earnings are up to £91 a week
11% NICs on £91.01-£610 a week
1% NICs over £610 a week |
| Employer |
Employer |
| No NICs on the first £94 a week
12.8% NICs over £94 a week |
No NICs on the first £91 a week
12.8% NICs over £91 a week |
| |
|
| Earnings limit
or threshold |
2005/06 |
2004/05 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower limit (LEL) |
82 |
356 |
4,264 |
79 |
342 |
4,108 |
| NICs start |
94 |
408 |
4,895 |
91 |
395 |
4,745 |
| Upper limit (UEL) |
630 |
2,730 |
32,760 |
610 |
2,644 |
31,720 |
| Contracted-out S2P rebate |
2005/06 |
2004/05 |
| Reduction on band earnings |
£82.01-£630 pw |
£79.01-£610 pw |
| Employer rate reduction |
| |
3.5% |
3.5% |
| |
1.0% |
1.0% |
| Employee rate reduction |
1.6% |
1.6% |
| Class 1A (Employers) |
|
|
| Most taxable employee benefits): |
12.8% |
12.8% |
| |
|
|
| Class 2 (Self-Employed) |
2005/06 |
2004/05 |
| Flat rate |
£2.10 pw £109.20 pa |
£2.05 pw £106.60 pa |
| If earnings over |
£4,345 pa |
£4,215 pa |
| Class 4 (Self-Employed)
|
2005/06 |
2004/05 |
| On profits |
£4,895-£32,760 pa 8% |
£4,745-£31,720 pa 8% |
| |
Over £32,760 pa 1% |
Over £31,720 pa 1% |
| Class 3 (Voluntary) |
2004/05 |
2004/05 |
| Flat rate |
£7.35pw £382.20 pa |
£7.15pw £371.80 pa |
| The summary has been prepared very rapidly
and may contain errors for which we cannot be held responsible.
The proposals are in any event subject to amendment before the
Finance Act is passed. Advice should be taken before any action. |
|
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