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National Insurance

Coins
 
£ per week
2008-09
2007-08
Employees
Lower earnings limit, primary Class 1
£90
£87
Upper earnings limit, primary Class 1
£770
£670
Primary threshold
£105
£100
Secondary threshold
£105
£100
Employees’ primary Class 1 rate between primary threshold and upper earnings limit
11%
11%
Employees - primary Class 1 rate above upper earnings limit
1%
1%
Employees - contracted-out rebate
1.6%
1.6%
Married women’s reduced rate between primary threshold and upper earnings limit
4.85%
4.85%
Married women’s rate above upper earnings limit
1%
1%
Employers’ secondary Class 1 rate above secondary threshold
12.8%
12.8%
Employers’ contracted-out rebate, salary-related schemes
3.7%
3.7%
Employers’ contracted-out rebate, money-purchase schemes
1.4%
1.4%
Employees' rates are reduced to 4.85% for married
women with valid certificates of election but the 1%
rate above £670 still applies. Employees' rates are nil for men over
65 and women over 60. Normal employers' contributions
are still payable.
Class 1A and Class 1B
12.8%
12.8%
Class 2 rate (self-employed)
£2.30
£2.210
Class 2 small earnings exception
£4,825 per year
£4,635 per year
Special Class 2 rate for share fishermen
£2.95
£2.85
Special Class 2 rate for volunteer development workers
£4.50
£4.35
Class 3 rate (voluntary contributions)
£8.10
£7.80
Class 4 lower profits limit (self-employed)
£5,435 per year
£5,225 per year
Class 4 upper profits limit (self-employed)
£40,040 per year
£34,840 per year
Class 4 rate between lower profits limit and upper profits limit
8%
8%
Class 4 rate above upper profits limit
1%
1%
The 2008 pre-budget announced that for 2009/10 the upper earnings limit for primary class 1 NI is to be aligned with the level at which higher rate income tax is paid, beign the total of the personal allowance and the basic rate band limit.

It also announced that from 2011/12, national insurance rates for employees and employers and class 4 contributions for the self-employed will rise by 0.5%. This also applies to both Class 1A and Class 1B contributions. From 2011/12 the primary threshold for NI will be aligned with the income tax single persons allowance.

 

 
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