Tax Rates >> National Insurance

National Insurance


£ per week 2013-14 2012-13
Employees
Lower earnings limit, primary class 1 £109 £107
Upper earnings limit, primary class 1 £797 £817
Upper accruals point (for those on contracted out pensions) £770 £770
Primary threshold (employees) £149 £146
Secondary threshold (employees) £148 £144
Employers primary class 1 rate between primary threshold and upper earnings limit 12% 12%
Employees primary class 1 rate above upper earnings limit 2% 2%
Employees contracted out rebate 1.4% 1.4%
Married womens reduced rate betwen primary threshold and upper earnings limit 5.85% 5.85%
Married womens rate above upper earnings limit 2% 2%
Employees secondary class 1 rate above secondary threshold 13.8% 13.8%
Employers contracted-out rebate, salary-related schemes 3.4% 3.4%
Employers contracted-out rebate, money-purchase schemes Abolished from 6.4.12 Abolished from 6.4.12
Rates are nil for those over state retirement age. Normal employers contributions are still payable
Class 1A and class 1B 13.8% 13.8%
Class 2 rate (self-employed) £2.70 £2.65
Class 2 small earnings exception £5,725 per year £5,595 per year
Special class 2 rate for share fisherman £3.30 £3.30
Special class 2 rate for volunteer development workers £5.35 £5.35
Class 3 rate (voluntary contributions) £13.55 £13.25
Class 4 lower profits limit (self-employed) £7,755 per year £7,605 per year
Class 4 upper profits limit (self-employed) £41,450 per year £42,475 per year
Class 4 rate between lower profits limit and upper profits limit 9% 9%
Class 4 rate above upper profits limit 2% 2%
There is no class 4 payable if the state retirement age was reached by 6 April 2012


NIC Holiday

Some businesses will be exempt from paying the employer's class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal