National Insurance Contributions 2010/11 Post Summer Budget

National Insurance Contributions

 

Class 1 (Employees)
Contracted InContracted Out
Salary RelatedMoney Purchase
Employee contributions
– on earnings between £110.01 – £770pw11.0%9.4%9.4%
– on earnings between £770.01 – £844pw11.0%11.0%11.0%
– on earnings above £844pw1.0%1.0%1.0%
Employer contributions
– on earnings between £110.01 and £770pw12.8%9.1%11.4%
– on earnings above £770pw12.8%12.8%12.8%
Employer contributions (at 12.8%) are also due on most benefits in kind and on tax paid on an employee’s behalf under a PAYE settlement agreement.
Class 2 (Self-employed)
Flat rate per week£2.40
Small earnings exception: profits per annum£5,075
Class 3 (Voluntary)
Flat rate per week£12.05
Class 4 (Self-employed)
On profits £5,715 – £43,8758.0%
On profits over £43,8751.0%
From September 2010, there will be a “holiday” from employee’s NIC for new businesses employing up to 10 new employees in their first year. The maximum benefit is £5000 per employee. Businesses in certain areas, such as London and the SE, are excluded.