National Insurance Contributions
Table D Rates and limits for 2013/14
| Class 1 | Weekly | Monthly | Yearly |
|---|---|---|---|
| Lower Earnings Limit (LEL) | £109 | £472 | £5,668 |
| Primary Threshold – employees (PT) | 149 | 646 | 7,755 |
| Secondary Threshold – employers (ST) | 148 | 641 | 7,696 |
| Upper Accrual Point (UAP) | 770 | 3,337 | 40,040 |
| Upper Earnings Limit – employees (UEL) | 797 | 3,454 | 41,450 |
| 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 £5,725 per year | £2.70 per week |
| Class 3 (Voluntary) | No limit applicable | £13.55 per week |
| Class 4 (Self-employed) | Profits between £7,755 and £41,450 | 9% |
| Profits above £41,450 | 2% | |