Budget 2008 - NI Contributions

2008 / 2009 National Insurance Contributions (NIC’s)

Employer

Employee

Class 1 - Not contracted out

Lower earnings limit

Weekly earnings bands payable on earnings

Up to £105

Nil

Nil

£105.01 - £770

12.8%

11%

Over £770

12.8%

1%

Over state retirement age

As above

Nil

Class 1A

On relevant benefits

12.8%

Nil

Class 2

Self employed

£2.30 per week

Limit of net earnings for exception

£4,825 p.a.

Class 3

Voluntary

£8.10 per week

Class 4*

Self employed on profits

£5,435 - £40,040

8%

Excess over £40,040

1%

*Exemption applies if state retirement age was reached by 6 April 2008