Tax Rates >> National Insurance
National Insurance
| £ per week | 2012-13 | 2011-12 |
|---|---|---|
| Employees | ||
| Lower earnings limit, primary class 1 | £107 | £102 |
| Upper earnings limit, primary class 1 | £817 | £817 |
| Upper accruals point (for those on contracted out pensions) | £770 | £770 |
| Primary threshold (employees) | £146 | £139 |
| Secondary threshold (employees) | £144 | £136 |
| Employers primary class 1 rate between primary threshold and upper earnings limit | 12% | 12% |
| Employees primary class 1 rate above upper earnings limit | 2% | 2% |
| Employees contracted out rebate | 1.4% | 1.6% |
| Married womens reduced rate betwen primary threshold and upper earnings limit | 5.85% | 5.85% |
| Married womens rate above upper earnings limit | 2% | 2% |
| Employees secondary class 1 rate above secondary threshold | 13.8% | 13.8% |
| Employers contracted-out rebate, salary-related schemes | 3.4% | 3.7% |
| Employers contracted-out rebate, money-purchase schemes | Abolished from 6.4.12 | 1.4% |
| Rates are nil for those over state retirement age. Normal employers contributions are still payable | ||
| Class 1A and class 1B | 13.8% | 13.8% |
| Class 2 rate (self-employed) | £2.65 | £2.50 |
| Class 2 small earnings exception | £5,595 per year | £5,315 per year |
| Special class 2 rate for share fisherman | £3.30 | £3.15 |
| Special class 2 rate for volunteer development workers | £5.35 | £5.10 |
| Class 3 rate (voluntary contributions) | £13.25 | £12.60 |
| Class 4 lower profits limit (self-employed) | £7,605 per year | £7,225 per year |
| Class 4 upper profits limit (self-employed) | £42,475 per year | £42,475 per year |
| Class 4 rate between lower profits limit and upper profits limit | 9% | 9% |
| Class 4 rate above upper profits limit | 2% | 2% |
| There is no class 4 payable if the state retirement age was reached by 6 April 2012 |
NIC Holiday
Some businesses will be exempt from paying the employer's class 1 NICs for 12 months for up to 10 employees, capped at £5,000 per employee. The scheme started in September 2010 but will apply to new businesses set up on and after 22 June 2010. It will only apply in Scotland, Wales, Northern Ireland, the North of England, Yorkshire, the Midlands and the South West regions. Certain businesses are excluded, such as those under the IR35 or Managed Service Company rules, and businesses in grant-supported sectors such as agriculture, fisheries and coal