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NATIONAL INSURANCE CONTRIBUTIONS

23rd March 2011 BUDGET PROPOSALS
AND CHANGES FOR 2011/2012 previously announced
(Subject to details in the Finance Bill)
Ellis Atkins have taken all due care in the presentation of these notes. No responsibility for loss occasioned to any person or company acting or refraining from action as a result of any material in these notes can be accepted by Ellis Atkins, its partners or staff. Please contact us or your own professional advisor for advice specific to your circumstances.

Revised contributions take effect from 6th April 2011.

2.1 Class 1 Contributions (per week)

Employees earning over £139 (was £110) per week will pay 12% (was 11%) on the excess up to £817 (was £884) per week, plus an additional 2% (was 1%) on the excess over £817 with no upper limit.

Employers will pay 13.8% (was 12.8%) on all earnings over £136 (was £110) per week.

2.2 The Class 2 rate for the self-employed increases to £2.50 per week. The small earnings exception is increased to £5,315 per year.

2.3 The Class 4 rate of 9% (was 8%) will be charged on profits between £7,225 and £42,475 plus an additional 2% on all profits above £42,475.

2.4 Most taxable benefits provided by employers will continue to be liable to Class 1A at 13.8%.