National Insurance Contributions
Table D Rates and limits for 2013/14
Class 1 |
Weekly |
Monthly |
Yearly |
---|---|---|---|
Lower Earnings Limit (LEL) |
£109 |
£472 |
£5,668 |
Primary Threshold – employees (PT) |
149 |
646 |
7,755 |
Secondary Threshold – employers (ST) |
148 |
641 |
7,696 |
Upper Accrual Point (UAP) |
770 |
3,337 |
40,040 |
Upper Earnings Limit – employees (UEL) |
797 |
3,454 |
41,450 |
Employer’s Contribution |
Contracted In |
Contracted Out |
---|---|---|
From 6th April 2012, only employment with a salary-related pension scheme can use the lower contracted-out NIC rates. |
||
On earnings up to ST |
Nil |
Nil |
On earnings between ST and UAP |
13.8% |
10.4% |
On earnings above UAP |
13.8% |
13.8% |
Employee’s Contribution |
||
---|---|---|
Contracted in: 12% on earnings between PT and UEL, 2% above UEL. |
||
Contracted out: 10.6% on earnings between PT and UAP; 12% from UAP to UEL; 2% above UEL. |
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Earnings over LEL qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings reach PT. |
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The reduced Class 1 rate payable by certain married women and widows is 5.85% for earnings between PT and UEL, 2% above UEL. |
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Class 2 (Self-employed) |
Earnings over £5,725 per year |
£2.70 per week |
Class 3 (Voluntary) |
No limit applicable |
£13.55 per week |
Class 4 (Self-employed) |
Profits between £7,755 and £41,450 |
9% |
|
Profits above £41,450 |
2% |