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> 21 March 2007 Budget Report > National Insurance Contributions
National Insurance Contributions
| Class 1 (not contracted out) |
Employer |
Employee |
| Lower earnings limit |
|
£87 |
| Payable on weekly earnings |
|
|
| £100.01 - £670 |
12.8% |
11% |
| Over £670 |
12.8% |
1% |
Men 65 and over and
women 60 and over |
as above |
Nil |
| Employees' contracted-out rebate |
1.6% |
| Married women's reduced rate between £100 and £670 |
4.85% |
| Employers' contracted-out rebate, salary-related schemes |
3.7% |
| Employers' contracted-out rebate, money purchase schemes |
1.4% |
| |
|
| Class 1A (on relevant benefits) |
12.8% |
Nil |
| |
|
| Class 1B (on PAYE settlement arrangement) |
12.8% |
|
| |
|
| Class 2 (Self employed) |
£2.20 per week |
| Class 2 contributions - share fishermen |
£2.85 per week |
| Class 2 contributions - volunteer development workers |
£4.35 per week |
| Limit of net earnings for exception |
£4,635 per annum |
| |
|
| Class 3 (Voluntary) |
£7.80 per week |
| |
|
| Class 4* (Self employed on profits) |
|
| £5,225 to £34,840 |
8% |
| Excess over £34,840 |
1% |
| *Exemption applies if state retirement age was reached by 6 April 2007. |
| |
|
| Maximum contributions |
|
| Class 1 or Class 1 & 2 |
£3,323.10 + 1% of earnings over £670 |
| Class 4 limiting amount |
£2,485.80 + 1% of profits over £34,840 a year |
For those earning between £87 per week and £670 per week, employers receive a rebate of 1.4% on contracted out money purchase schemes or 3.7% on contracted out final salary schemes, and employees, a rebate of 1.6% for either scheme.
For children under 16, men over 65 and women over 60 there are no employee national insurance contributions payable, but employers' contributions remain payable.
