Budget Report - 9 April 2003
National Insurance
| 2003/2004 National Insurance Contributions (NICs) |
| |
Employer |
Employee |
| Class 1 - not contracted out |
| Weekly earnings bands payable on earnings |
| Up to £89 |
Nil |
Nil |
| £89.01 - £595 |
12.8% |
11% |
| Over £595 |
12.8% |
1% |
| Men 65 and over and women 60 and over |
as above |
Nil |
Class 1A |
On relevant benefits |
12.8% |
Nil |
| Class 2 |
Self employed |
£2.00 per week |
| Limit of net earnings for exception |
£4,095 pa |
| Class 3 |
Voluntary |
£6.95 per week |
| Class 4* |
Self employed on profits |
|
| £4,615 - £30,940 |
8% |
| Over £30,940 |
1% |
*Exemption applies if state retirement age was reached by 6 April 2003 |
|
Pointer:
Have you prepared for the rise in NICs? With a typical business employing say 25 workers on average pay of £15,000pa, the 1% increase will cost £7,500 in total, half each payable by employer and employees.
Details