National Insurance Contributions

Table D Rates and limits for 2012/13

Class 1 Weekly Monthly Yearly
Lower Earnings Limit (LEL) £107 £464 £5,564
Primary Threshold – employees (PT) 146 634 7,605
Secondary Threshold – employers (ST) 144 624 7,488
Upper Accrual Point (UAP) 770 3,337 40,040
Upper Earnings Limit – employees (UEL) 817 3,540 42,475

   

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 £5,595 per year £2.65 per week
Class 3 (Voluntary) No limit applicable £13.25 per week
Class 4 (Self-employed) Profits between £7,605 and £42,475 9%
  Profits above £42,475 2%

 
 

 
 

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