National Insurance Contributions

Class 1	Employer	Employee
(not contracted out)
payable on weekly earnings
£87.01 - £575	11.9%	10%
Over £575	11.9%	£48.80 max
Men 65 and over and women 60 and over	as above	Nil

Class 2 Self employed	£2.00 per week
Limit of net earnings for exception	£3,955.00 per annum
Class 3 Voluntary	£6.75 per week
Class 4* Self employed on profits	7%
£4,535 – £29,900	£1,775.55 maximum

*Exemption applies if state retirement age is reached by 6 April 2001.

Note

For those earning between £72 per week and £575 per week, employers receive a rebate of 0.6% on contracted out money purchase schemes or 3% on contracted out final salary schemes on the above rates, and employees, a rebate of 1.6%. The earnings above £575 per week are charged at 11.9% on the employer only.

Did you know?

That the Treasury this year expects their national insurance revenues to be in the region of £60 billion.