Neil Westwood & Co.

 

Chartered Accountants

 

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National Insurance Contributions


Class 1 (not contracted out)EmployerEmployee
Payable on weekly earnings of   
Up to £102 (lower earnings limit)NilNil
£102 - £136 (employers’ earnings threshold) NilNil
£136.01 - £139 (employees’ earnings threshold) 13.8%Nil
£139.01 - £770 (upper accrual point) 13.8%12%
£770.01 - £817 (upper earnings limit)13.8%12%
Over £817 13.8%2%
Over state retirement age, the employee contribution is generally Nil
  
Class 1A (on relevant benefits)13.8%Nil
  
Class 1B (on PAYE settlement arrangement)13.8%Nil
  
Class 2 (Self employed)£2.50 per week
Limit of net earnings for exception£5,315 per annum
  
Class 3 (Voluntary)£12.60 per week
  
Class 4* (Self employed on profits) 
£7,225 - £42,4759%
Excess over £42,4752%
*Exemption applies if state retirement age was reached by 6 April 2011.

Note

For those earning between £102 per week and £770 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out salary related schemes, and employees a rebate of 1.6% for either scheme.




 

Neil Westwood & Co.

101 Dixons Green Road, Dudley

West Midlands, DY2 7DJ