Budget
2008
NATIONAL
INSURANCE CONTRIBUTIONS
| Class
1 (Employees) |
| Not
Contracted out of State Second
Pension S2P |
| 2008/09 |
2007/08 |
| Employee |
Employee |
No
NICs where earnings
are up to £105 a week
11% NICs on £105.01-£770
a week
1% NICs over £770 a week |
No NICs where earnings
are up to £100 a week
11% NICs on £100.01-£675
a week
1% NICs over £670 a week |
| Employer |
Employer |
No NICs on the first £105
a week
12.8% NICs over £105 a
week |
No NICs on the first £100
a week
12.8% NICs over £100 a
week |
|
| Earnings
limit or threshold |
2008/09 |
2007/08 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower
limit (LEL) |
90 |
390 |
4,680 |
87 |
377 |
4,524 |
| NICs
start |
105 |
453 |
5,435 |
100 |
435 |
5,225 |
| Upper
limit (UEL) |
770 |
3,337 |
40,040 |
670 |
2,903 |
34,840 |
|
| Contracted-out
S2P rebate |
2008/09 |
2007/08 |
|
| Reduction
on band earnings |
£90.01-£770
pw |
£87.01-£670
pw |
|
| Employer
rate reduction |
|
|
|
|
3.7% |
3.7% |
|
|
1.4% |
1.4% |
|
| Employee
rate reduction |
1.6% |
1.6% |
|
|
| Class
1A (Employers) |
|
|
|
| Most
taxable employee benefits |
12.8%
|
12.8%
|
|
| |
|
|
|
|
|
Class 2 (Self-Employed) |
2008/09 |
2007/08 |
|
| Flat
rate |
£2.30
pw £119.60 pa |
£2.20
pw £114.40 pa |
|
| If
earnings over |
£4,825
pa |
£4,635
pa |
|
|
| Class
4 (Self-Employed) |
2008/09 |
|
2007/08 |
|
| On
profits |
£5,435-£40,040
pa |
8% |
£5,225-£34,840
pa |
8% |
| |
Over
£40,040 pa |
1% |
Over
£34,840 pa |
1% |
|
| Class
3 (Voluntary) |
2008/09 |
2007/08 |
| Flat
rate |
£8.10pw
£421.20 pa |
£7.80pw
£405.60 pa |
|
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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.
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