|
|
 |
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
|
2002-03
|
|
Lower
earnings limit, primary class 1
|
£75
per week
|
|
Upper
earnings limit, primary class 1
|
£585
per week
|
|
Primary
threshold
|
£89
per week
|
|
Secondary
threshold
|
£89
per week
|
|
Employees’
primary class 1 rate
|
10%
of £89.01 to £585 per week
|
|
Employees’
contracted-out rebate
|
1.
6%
|
|
Married
women’s reduced rate
|
3.85%
|
|
Employers’
secondary Class 1 rate
|
11.8%
on earnings above £89 per week
|
|
Employers’
contracted-out rebate, salary-related schemes
|
3.5%
|
|
Employers’
contracted-out rebate, money-purchase schemes
|
1.0%
|
|
Class
2 rate
|
£2.00
per week
|
|
Class
2 small earnings exception
|
£4,025
per year
|
|
Special
Class 2 rate for share fishermen
|
£2.65
per week
|
|
Special
Class 2 rate for volunteer development workers
|
£3.75
per week
|
|
Class
3 rate
|
£6.85
per week
|
|
Class
4 rate
|
7%
|
|
Class
4 lower profits limit
|
£4,615
per year
|
|
Class
4 upper profits limit
|
£30,420
per year
|
|
