 |
2005/06 Rates and Allowances
|
 |
National Insurance Contributions
| Class 1 (not contracted out) |
Employer |
Employee |
| Lower earnings limit |
|
£82 |
| Payable on weekly earnings |
|
|
| £94.01 - £630 |
12.8% |
11% |
| Over £630 |
12.8% |
1% |
Men 65 and over and
women 60 and over |
as above |
Nil |
| |
|
| Class 1A (on relevant benefits) |
12.8% |
Nil |
| |
|
| Class 1B (on PAYE settlement arrangement) |
12.8% |
|
| |
|
| Class 2 (Self employed) |
£2.10 per week |
| Limit of net earnings for exception |
£4,345 per annum |
| |
|
| Class 3 (Voluntary) |
£7.35 per week |
| |
|
| Class 4 (* Self employed on profits) |
|
| £4,895 to £32,760 |
8% |
| Excess over £32,760 |
1% |
| *Exemption applies if state retirement age was reached by 6 April 2005. |
Note
For those earning between £82 per week and £630
per week, employers receive a rebate of
1.0% on contracted out money purchase schemes or 3.5% on contracted
out final salary schemes, and employees, a rebate of 1.6% for either scheme.
Did you know?
That the Government is expecting to receive £82.6 billion from national insurance contributions. This represents an increase of £4.7 billion (6%) compared with the previous year.
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