| NATIONAL INSURANCE
CONTRIBUTIONS (NICs) |
Class 1 (Employees)
Contracted into State Second Pension
(S2P)
| |
2005/06 |
2004/05 |
| Employee |
No NICs
where earnings are up to £94
a week |
No
NICs where earnings are are up to
£91 a week |
| |
11% NICs
on £94.01-£630 a week
|
11%
NICs on £91.01-£610
a week |
| |
1% NICs
over £630 a week |
1%
NICs over £610 a week |
| |
|
|
| Employer |
No NICs
on the first £94 a week |
No
NICs on the first £91 a week |
| |
12.8%
NICs over £94 a week |
12.8%
NICs over £91 a week |
| |
|
|
| |
2005/06 |
2004/05 |
Earnings
limit or threshold |
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- £630pw |
£79.01- £610pw |
| Employer rate reduction |
|
|
| • Salary-related scheme |
3.5% |
3.5% |
| • Money-purchase scheme |
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 |
£2.10pw £109.20pa |
£2,05pw £106.60pa |
| If earnings are
over |
£4,345pa |
£4,215pa |
| |
|
|
| Class 4 (Self-employed) |
2005/06 |
2004/05 |
| On profits |
£4,895-£32,760pa
8% |
£4,745-£31,720pa
8% |
| |
Over £32,760pa
1% |
Over £31,720pa
1% |
| |
|
|
| Class 3 (Voluntary)
|
2005/06 |
2004/05 |
| Flat rate |
£7.35pw £382.20pa |
£7.15pw £371.80pa |
|
|
