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Spring Budget 2007

National insurance contributions (NIC)  Return to BSG Valentine homepage

Class 1 (Employees)
Not Contracted out of State Second Pension S2P
2007/08 2006/07
Employee Employee

No NICs where earnings
are up to £100 a week
11% NICs on £100.01-£670 a week
1% NICs over £670 a week

No NICs where earnings
are up to £97 a week
11% NICs on £97.01-£645 a week
1% NICs over £645 a week
Employer Employer

No NICs on the first £100 a week
12.8% NICs over £100 a week

No NICs on the first £97 a week
12.8% NICs over £97 a week

Earnings limit or threshold 2007/08 2006/07
  Weekly Monthly Annual Weekly Monthly Annual
£ £ £ £ £ £
Lower limit (LEL) 87 377 4,524 84 364 4,368
NICs start 100 435 5,225 97 420 5,035
Upper limit (UEL) 670 2,903 34,840 645 2,795 33,540
Contracted-out S2P rebate 2007/08 2006/07  
Reduction on band earnings £87.01-£670 pw £84.01-£645 pw  
Employer rate reduction      
  • Salary-related scheme
 3.7% 3.5%  
  • Money-purchase scheme
 1.4% 1.0%  
Employee rate reduction 1.6% 1.6%  
Class 1A (Employers)      
Most taxable employee benefits 12.8% 12.8%  
       
Class 2 (Self-Employed) 2007/08 2006/07  
Flat rate £2.20 pw £114.40 pa £2.10 pw £109.20 pa  
If earnings over £4,635 pa £4,465 pa  
Class 4 (Self-Employed) 2007/08   2006/07  
On profits £5,225-£34,840 pa 8% £5,035-£33,540 pa 8%
  Over £34,840 pa 1% Over £33,540 pa 1%
Class 3 (Voluntary) 2007/08 2006/07
Flat rate £7.80pw £405.60 pa £7.55pw £392.60 pa
bullet point Introduction
bullet point Personal taxation
bullet point Pensions and employment taxation
bullet point Business taxes
bullet point Capital taxes
bullet point VAT
bullet point Self-assessment and compliance
bullet point National insurance contributions
This summary has been prepared very rapidly and is for general information only. The proposals are in any event subject to amendment before the Finance Act is passed. You are recommended to seek competent professional advice before taking any action on the basis of the contents of this publication.