| Class 1 (Employees) |
| |
Contracted In |
Contracted Out |
| |
|
Salary Related |
Money Purchase |
| Employee contributions |
|
|
|
| - on earnings between £110.01 - £770pw |
11.0% |
9.4% |
9.4% |
| - on earnings between £770.01 - £844pw |
11.0% |
11.0% |
11.0% |
| - on earnings above £844pw |
1.0% |
1.0% |
1.0% |
| Employer contributions |
|
|
|
| - on earnings between £110.01 and £770pw |
12.8% |
9.1% |
11.4% |
| - on earnings above £770pw |
12.8% |
12.8% |
12.8% |
| Employer contributions (at 12.8%) are also due on most benefits in kind and on tax paid on an employee's behalf under a PAYE settlement agreement. |
| |
| Class 2 (Self-employed) |
| Flat rate per week |
£2.40 |
| Small earnings exception: profits per annum |
£5,075 |
| |
| Class 3 (Voluntary) |
| Flat rate per week |
£12.05 |
| |
| Class 4 (Self-employed) |
| On profits £5,715 - £43,875 |
8.0% |
| On profits over £43,875 |
1.0% |
| From September 2010, there will be a "holiday" from employer's NIC for new businesses employing up to 10 new employees in their first year. The maximum benefit is £5000 per employee. Businesses in certain areas, such as London and the SE, are excluded. |
