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.

Earnings over LEL qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings reach PT.

The reduced Class 1 rate payable by certain married women and widows is 5.85% for earnings between PT and UEL, 2% above UEL.

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%