Budget March 2011: National Insurance Contributions (NICs)
Wednesday 23rd March 2011
As previously announced for 2011/12, the main and additional rates of NICs will increase by 1%.
|
2011/12 |
Employer |
Employee |
|
Class 1 – not contracted out |
|
|
|
Payable on weekly earnings of |
|
|
|
Below £102 (lower earnings limit) |
Nil |
Nil |
|
£102 - £136 (employers’ earnings threshold) |
Nil |
Nil |
|
£136.01 - £139 (employees’ earnings threshold) |
13.8% |
Nil |
|
£139.01 - £770 (upper accrual point) |
13.8% |
12% |
|
£770.01 - £817 (upper earnings limit) |
13.8% |
12% |
|
over £817 |
13.8% |
2% |
Over state retirement age, the employee contribution is generally nil.
|
Class 1A |
On relevant benefits |
13.8% |
Nil |
|
Class 2 |
Self employed |
£2.50 per week |
|
|
|
Limit of net earnings for exception |
£5,315 per annum |
|
|
Class 3 |
Voluntary |
£12.60 per week |
|
|
Class 4* |
Self employed on profits |
|
|
|
|
£7,225 - £42,475 |
9% |
|
|
|
Excess over £42,475 |
2% |
|
*Exemption applies if state retirement age was reached by 6 April 2011.
Changes to payment dates - Class 2 NICs
From April 2011, HMRC will issue just two payment requests in the year in October and April, showing payments due by 31 January and 31 July, respectively. This means that the due dates for payment of 2011/12 Class 2 NICs will be 31 January 2012 and 31 July 2012.
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