Elson Geaves Accountancy | National Insurance Contributions
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National Insurance Contributions

National Insurance Contributions

Table D   Rates and limits for 2014/15

 

Class 1 Weekly Monthly Yearly
Lower Earnings Limit (LEL) £111 £481 £5,772
Primary Threshold – employees (PT) 153 663 7,956
Secondary Threshold – employers (ST) 153 663 7,956
Upper Accrual Point (UAP) 770 3,337 40,040
Upper Earnings Limit – employees (UEL) 805 3,489 41,865

 

Employer’s Contribution Contracted In Contracted Out
From 6.4.12, only employment with a salary-related pension scheme can benefit from 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 benefits, and must be reported under PAYE, but no NICs are payable until earnings reach PT.
Class 2 (Self-employed) Earnings over £5,885 per year £2.75 per week
Class 3 (Voluntary) No limit applicable £13.90 per week
Class 4 (Self-employed) Profits between £7,956 and £41,865 9%
Profits above £41,865 2%