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Taxes
/ National Insurance (NI) |
National
Insurance (NI)
A form of taxation, payable by employees, employers and the self
employed, which is notionally to fund state benefits including pensions,
sickness, unemployment and maternity.
It is part of the state's social security system and ultimately
controlled by the Department of Social Security.
Below is a table of National Insurance contributions.
|
Item
|
2003-04
|
2004-05
|
|
Lower earnings limit, primary class 1 |
£77 per week |
£79 per week |
|
Upper earnings limit, primary class 1 |
£595 per week |
£610 per week |
|
Primary threshold |
£89 per week |
£91 per week |
|
Secondary threshold |
£89 per week |
£91 per week |
|
Employees’ primary class 1 rate |
11% of £89.01 to £595 per week
1% above £595 per week |
11% of £91.01 to £610 per week
1% above £610 per week |
|
Employees’ contracted-out rebate |
1. 6% |
1. 6% |
|
Married women’s reduced rate |
4.85% of £89.01 to £595 per week
1% above £595 per week |
4.85% of £91.01 to £610 per week
1% above £610 per week |
|
Employers’ secondary Class 1 rate |
12.8% on earnings above £89 per week |
12.8% on earnings above £91 per week |
|
Employers’ contracted-out rebate, salary-related schemes
|
3.5% |
3.5% |
|
Employers’ contracted-out rebate, money-purchase schemes
|
1.0% |
1.0% |
|
Class 2 rate |
£2.00 per week |
£2.05 per week |
|
Class 2 small earnings exception |
£4,095 per year |
£4,215 per year |
|
Special Class 2 rate for share fishermen |
£2.65 per week |
£2.70 per week |
|
Special Class 2 rate for volunteer development workers |
£3.85 per week |
£3.95 per week |
|
Class 3 rate |
£6.95 per week |
£7.15 per week |
|
Class 4 rate |
8% of £4,615 to £30,940 per year
1% above £30,940 per year |
8% of £4,745 to £31,720 per year
1% above £31,720 per year |
|
Class 4 lower profits limit |
£4,615 per year |
£4,745 per year |
|
Class 4 upper profits limit |
£30,940 per year |
£31,720 per year |
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