National Insurance

Table D
Rates and limits for 2008/09
 
Class 1 Weekly Monthly Yearly
Primary Threshold - employees £105 £453 £5,435
Upper Earnings Limit - employees £770 £3,337 £40,040
Secondary Threshold - employers £105 £453 £5,435
 
Employer's Contribution Contracted In Contracted Out
    Salary Related Scheme Money Purchase Scheme
On earnings up to threshold Nil Nil Nil
On earnings between threshold and upper earnings limit 12.8% 9.1% 11.4%
On earnings above upper earnings limit 12.8% 12.8% 12.8%
 
Employee's Contribution
Contracted in: 11% on earnings between lower and upper limits, 1% above upper limit.
Contracted Out: 9.4% on earnings between lower and upper limits, 1% above upper limit.

Earnings over £90 per week qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings exceed £105 per week.

The reduced Class 1 rate payable by certain married women and widows is 4.85% for earnings between £105 and £770 per week, 1% above £770 per week.
 
Class 2 (Self-employed) Earnings over £4,825 per year £2.30 per week
Class 3 (Voluntary) No limit applicable £8.10 per week
Class 4 (Self-employed) Profits between £5,435 and £40,040 8%
  Profits above £40,040 1%