SERVICES
Personal Taxation
Accountancy
Book Keeping
Payroll
Corporate Taxation
Computer Consultancy
Audits
E-Commerce Solutions
Management Advice for Small & Medium Business Start-Ups
ICAEW - Member firm


Registered to carry on Audit Work and regulated for a range of Investment Business Activities by The Institute of Chartered Accountants in England and Wales
Home Page
NATIONAL INSURANCE CONTRIBUTIONS

24th March 2010 BUDGET PROPOSALS
AND CHANGES FOR 2010/2011 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 2010. All rates and thresholds for 2010/2011 remain unchanged from 2009/2010, other than a £2 increase for primary Class 1 lower earnings limit to £97 per week.

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.

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

2.5 From 2011/2012 the Class 1 employee’s rate will increase from 11% to 12%, Class 1 employer’s rate will increase from 12.8% to 13.8% and the Class 4 rate will increase from 8% to 9%.