Rates & Allowances

Class 1 (Employees) Not Contracted out of State Second Pension S2P
2011/12
2010/11
Employee: Employee:
No NICs where earnings
are up to £136 a week
12% NICs on £139.01-£817 a week
2% NICs over £817 a week		 No NICs where earnings
are up to £110 a week
11% NICs on £110.01-£844 a week
1% NICs over £844 a week
   
Employer: Employer:
No NICs on the first £136 a week
13.8% NICs over £136 a week		 No NICs on the first £110 a week
12.8% NICs over £110 a week

Married women's reduced rate - 5.85% on earnings between £139 and £817 per week plus 2% on earnings above £817 per week.
Earnings limit or threshold
2011/12
.
2010/11
.
Weekly
Monthly
Annual
.
Weekly
Monthly
Annual
.
£
£
£
.
£
£
£
Lower limit (LEL)
102
442
5,304
.
97
421
5,044
Primary threshold *
139
602
7,225
.
110
476
5,715
Secondary threshold
136
589
7,072
.
110
476
5,715
Upper accrual point
770
3,337
40,040
.
770
3,337
40,040
Upper limit (UEL)
817
3,540
42,475
.
844
3,656
43,875

*For earnings between secondary threshold and the primary threshold National Insurance becomes payable by the employer but not the employee.

Contracted-out S2P rebate
2011 / 12
2010 / 11
Reduction on band earnings
£102.01-£770 pw
£97.01-£770 pw
Employer rate reduction:
.
.
Salary-related scheme
3.7%
3.7%

Money-purchase scheme
1.4%
1.4%
Employee rate reduction
1.6%
1.6%
.
.
.

Class 1A (Employers)
.
.

Most taxable employee benefits
13.8%
12.8%
.
.
.

Class 2 (Self-Employed)
.
.

Flat rate
£2.50 pw
£130.00 pa
£2.40 pw
£124.80 pa

Small earnings exception
£5,315 pa
£5,075 pa
- for share fishermen
£3.15 pw
£3.05 pw
- for volunteer development workers
£5.10 pw
£4.85 pw
.
.
.
Class 4 (Self-Employed) . .
On profits
£7,225-£42,475 pa = 9%
Over £42,475 pa = 2%
£5,715-£43,875 pa = 8%
Over £43,875 pa = 1%
.
.
.

Class 3 (Voluntary)

 . .
Flat rate
£12.60 pw
£655.20 pa
£12.05 pw
£626.60 pa

Changes to payment dates - Class 2 NICs
From April 2011, HMRC will issue just two payment requests in the year in October and April, showing payments due by 31 January and 31 July, respectively. This means that the due dates for payment of 2011/12 Class 2 NICs will be 31 January 2012 and 31 July 2012.