National Insurance

£ per week 2010-11 2009-10
Employees
Lower earnings limit, primary Class 1 £97 £95
Upper earnings limit, primary Class 1 £844 £844
Upper accruals point (for those on contracted out pensions) £770 £770
Primary threshold £110 £110
Secondary threshold £110 £110
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%
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) £2.40 £2.40
Class 2 small earnings exception £5,075 per year £5,075 per year
Special Class 2 rate for share fishermen £3.05 £3.05
Special Class 2 rate for volunteer development workers £4.85 £4.75
Class 3 rate (voluntary contributions) £12.05 £12.05
Class 4 lower profits limit (self-employed) £5,715 per year £5,715 per year
Class 4 upper profits limit (self-employed) £43,875 per year £43,875 per year
Class 4 rate between lower profits limit and upper profits limit 8% 8%
Class 4 rate above upper profits limit 1% 1%

 

It is proposed that from 2011/12, national insurance rates for employees and employers and class 4 contributions for the self-employed will rise by 1.0%. This also applies to both Class 1A and Class 1B contributions.
The additional rate of Class1 and Class4 contributions is also to be increased from 1% to 2%. To help protect those on lower earnings from these rises, the primary threshold and lower profits limits are to be increased by £570 so those people earning less than £20,000 will pay less NI.
From 2011/12 the primary threshold for NI will be aligned with the income tax single persons allowance.

Tax information provided by :