N I Contributions 2012

 
 
The June Budget 2010 announced the main rates and thresholds for national insurance contributions (NICs) for 2011-12.  The other values were confirmed in December 2010. These are set out below.
 
 
 
 
 Employee & Employer - rates & thresholds                2010-11                2011-12
per week unless stated
Lower Earnings Limit (LEL) for Class 1 NICs                    £97.00                £102.00
Upper Earnings Limit (UEL) for Employees'
(Primary) Class 1 NICs                                              £844.00                £817.00
Upper Accrual Point (UAP)                                         £770.00                £770.00
Primary Threshold                                                    £110.00                £139.00
Secondary Threshold                                                £110.00                £136.00
 
Employee's (primary) Class 1 contribution rates
2010-11 weekly earnings from £110.01 to £844.00
Earnings Limit                                                             11%                    N/A
2010-11 weekly earnings above £844.00                           1%                    N/A
2011-12 weekly earnings from £139.01 to £817.00             N/A                    12%
2011-12 weekly earnings above £817.00                          N/A                     2%
 
Employer's (secondary) Class 1 contribution rates 
2010-11 weekly earnings above £110.00                        12.8%                   N/A
2011-12 weekly earnings above £136.00                          N/A                   13.8%
 
Self Employed and Others - rates and thresholds-per week unless stated  
Class 2 National insurance contributions*                   2010-11                2011-12 
Self employed - class 2 NICs                                        2.40                    2.50
Small earnings annual exemption level-class 2 NICs        £5,075                £5,315
Volunteer development workers-class 2 NICs                   4.85                    5.10
Share fishermen-class 2 NICs                                        3.05                   3.15
 
Class 3 National insurance contributions  
Voluntary contributions                                              12.05                  12.60
 
Class 4 National insurance contributions
2010-11 annual profits below Lower Profits Limit £5,715     Nil                      N/A
2010-11 annual profits above Lower Profits Limit £5,715
but below Upper Profits Limit £43,875                             8%                     N/A 
2010-11 annual profits above Upper Profits Limit £43,875   1%                     N/A    
2011-12 annual profits below Lower Profits Limit £7,225     N/A                     Nil
2011-12 annual profits above Lower Profits Limit £7,225
but below Upper Profits Limit £42,475                             N/A                     9% 
2011-12 annual profits above Upper Profits Limit £42,475   N/A                     2%
 
*Class 2 NICs are paid by all self-employed persons.
 
Those with profits less than, or expected to be less than,
the level of the small earnings exception may apply for exemption from paying Class 2 contributions.

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