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Inheritance tax
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Useful resources
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National Insurance Contributions

Explanation of terms

   
Class 1 Payable in respect of earnings of employees. The employeee pays "primary" contributions and the employer "secondary" contributions
   
Class 1A Due from employer on benefits not collected under Class1
   
Class 1B Paid by employers on grossed-up value of PAYE settlements
   
Class 2 Self-employeds' weekly contributions
   
Class 3 Voluntary contributions by, say, the unemployed
   
Class 4 Self-employeds' main contributions paid with Schedule D, Case 1
   
Contracted Out Where employers choose to make other arrangements for their employees' earnings-related pensions they can contract out of the state second pension (S2P) scheme (formerly SERPS)
   
2009-10 2008-09 2007-08
Annual Weekly Annual Weekly Annual Weekly
£ £ £ £ £ £
Class 1
     
Lower earnings' limit
4,940 95 4,680 90 4,524 87
Earnings' threshold
5,720 110 5,460 105 5,200 100
Upper earnings' limit
43,888 844 40,040 770 33,840 670
Upper accruals point
 40,040 770        
Employer Employee Employer Employee Employer Employee
% % % % % %
Not contracted out to UEL
 12.8 11.0 12.8 11.0 12.8 11.0
Not contracted out above UEL
 12.8 1.0 12.8 1.0 12.8 1.0
Married women's reduced rate to UEL
 12.8 4.85 12.8 4.85 12.8 4.85
Married women's reduced rate above UEL
 12.8 1.0 12.8 1.0 12.8 1.0
Contracted out - salary related
     
standard
 9.3 9.4 9.3 9.4 9.3 9.4
over upper earnings limit
12.8 - 12.8 - 12.8 -
rebate between lower earnings' limit and earnings' threshold
 3.7 1.6 3.7 1.6 3.5 1.6
Contracted out - money purchase
     
standard
 11.8 - 11.8 - 11.8 -
over upper earning's limit
 12.8 - 12.8 - 12.8 -
rebate between lower earnings' limit and earnings' threshold
 1.4 - 1.0 - 1.0 -
Class 1A
12.8 12.8 11.8
Class 1B
12.8 12.8 11.8
Class 2
     
Normal rate
£2.40pw £2.30 pw £2.20 pw
Share fisherman
£3.05 £2.95 pw £2.85 pw
Volunteer development workers
 £4.75 £4.50 pw £4.35 pw
Small earnings exception
 £5,075pa £4,825 pa £4,635 pa
Class 3
£12.05 £8.10 pw £7.80 pw
Class 4
     
Percentage rate
8.0 8.0 8.0
Annual lower earnings' limit
 £5,715 £5,435 £5,225
Annual upper earnings' limit
 £43,875 £40,040 £34,840
Above upper earnings' limit
 1.0 1.0 1.0