National insurance contributions
| 2012/13 | ||
| Class 1 (not contracted out) | Employer | Employee |
| Lower earnings limit | £107 | |
| Payable on weekly earnings | ||
| £144.01 - £146 | 13.8% | Nil |
| £146.01 - £817 | 13.8% | 12% |
| Over £817 | 13.8% | 2% |
| Payable on monthly earnings | ||
| £624 - £634 | 13.8% | Nil |
| £634 - £3,540 | 13.8% | 12% |
| Over £3,540 | 13.8% | 2% |
| Men 65 and over and women from the date they qualify for state pension |
13.8% | Nil |
| Employees' contracted-out rebate | 1.4% | |
| Married women's reduced rate between £144 and £817 | 5.85% | |
| Employers' contracted-out rebate, salary-related schemes | 3.4% | |
| Employers' contracted-out rebate, money purchase schemes | Abolished from 6 April 2012 | |
| Class 1A (on relevant benefits) | 13.8% | Nil |
| Class 1B (on PAYE settlement arrangement) | 13.8% | |
| Class 2 (self employed) | £2.65 per week | |
| Class 2 contributions - share fishermen | £3.30 per week | |
| Class 2 contributions - volunteer development workers | £5.35 per week | |
| Limit of net earnings for exception | £5,595 per annum | |
| Contributions cease at state retirement age | ||
| Class 3 (voluntary) | £13.25 per week | |
| Class 4* (Self employed on profits) | ||
| £7,605 to £42,475 | 9% | |
| Excess over £42,475 | 2% | |
| *Exemption applies if state retirement age was reached by 6 April 2012. | ||
| Maximum contributions | ||
| Class 1 | £4,267.56 + 2% of earnings over £42,475 pa. | |
| Class 2 and Class 4 | £3,278.75 + 2% of profits over £42,475 pa. | |
Notes
- For those earning between £144 per week and £817 per week, employers receive a rebate of 3.4% on contracted out final salary schemes, and employees, a rebate of 1.4%. The rebate for money purchase schemes is abolished from 6 April 2012.
- For children under 16, and employees over state pension age there are no national insurance contributions payable, but employers' contributions remain payable.
Did you know?
That the Treasury is expecting to raise £105.6 billion (2011/12 £102 billion) from national insurance contributions. In the current year this represents almost 80 per cent of the receipts from PAYE.
