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NATIONAL INSURANCE CONTRIBUTIONS

22nd April 2009 BUDGET PROPOSALS
AND CHANGES FOR 2009/2010 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 on 6th April 2008:

2.1 Class 1 Contributions (per week)

Employees earning over £110 per week will pay 11% on the excess up to £884 per week, plus an additional 1% on the excess over £884 with no upper limit.

Employers will pay 12.8% on all earnings over £110 per week.

2.2 The Class 2 rate for the self-employed increases to £2.40 per week. The small earnings exception is increased to £5,075 per year.

2.3 The Class 4 rate of 8% will be charged on profits between £5,715 and £43,875 (an increase of £3,835 on 2008/2009) plus an additional 1% on all profits above £43,875.

2.4 Most taxable benefits provided by employers will continue to be liable to Class 1A at 12.8%.