|
THE
CHANCELLOR'S BUDGET 21ST
MARCH 2007 |
|
National insurance contributions (NIC)
| Class 1 (Employees) |
| Not Contracted out of State Second Pension S2P |
| 2007/08 |
2006/07 |
| Employee |
Employee |
|
No NICs where earnings
are up to
£100 a week
11% NICs on £100.01-£670 a week
1% NICs
over £670 a week |
No NICs where earnings
are up to £97
a week
11% NICs on £97.01-£645 a week
1% NICs over
£645 a week |
| Employer |
Employer |
|
No NICs on the first £100 a week
12.8% NICs over £100 a week |
No NICs on the first £97 a week
12.8% NICs over £97 a week |
| Earnings limit or threshold |
2007/08 |
2006/07 |
| |
Weekly |
Monthly |
Annual |
Weekly |
Monthly |
Annual |
| £ |
£ |
£ |
£ |
£ |
£ |
| Lower limit (LEL) |
87 |
377 |
4,524 |
84 |
364 |
4,368 |
| NICs start |
100 |
435 |
5,225 |
97 |
420 |
5,035 |
| Upper limit (UEL) |
670 |
2,903 |
34,840 |
645 |
2,795 |
33,540 |
| Contracted-out S2P rebate |
2007/08 |
2006/07 |
|
| Reduction on band
earnings |
£87.01-£670 pw |
£84.01-£645 pw |
|
| Employer rate reduction |
|
|
|
|
|
3.7% |
3.5% |
|
|
|
1.4% |
1.0% |
|
| Employee rate reduction |
1.6% |
1.6% |
|
| Class 1A
(Employers) |
|
|
|
| Most taxable employee
benefits |
12.8% |
12.8% |
|
| |
|
|
|
| Class 2
(Self-Employed) |
2007/08 |
2006/07 |
|
| Flat rate |
£2.20
pw £114.40 pa |
£2.10 pw
£109.20 pa |
|
| If earnings over |
£4,635 pa |
£4,465
pa |
|
| Class 4
(Self-Employed) |
2007/08 |
|
2006/07 |
|
| On profits |
£5,225-£34,840 pa |
8% |
£5,035-£33,540 pa |
8% |
| |
Over
£34,840 pa |
1% |
Over
£33,540 pa |
1% |
| Class 3
(Voluntary) |
2007/08 |
2006/07 |
| Flat rate |
£7.80pw £405.60 pa |
£7.55pw £392.60 pa |
|
|
|
|
