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National Insurance

Whether you are an employer, employee, employed or self-employed, awareness of National Insurance contributions (NICs) is vital. And with strong enforcement powers and anti-avoidance legislation available to HMRC, ensuring that you comply with your National Insurance contributions is of paramount importance.

Our quick reference chart below gives a brief overview of current NI contribution rates.

2012/13 Class 1 (employed) contracted in rates:

Employee		Employer
Earnings per week	NIC	Earnings per week	NIC
Up to £146	Nil*	Up to £144	Nil
£146.01 - £817	12%	Over £144	13.8%
Over £817	2%

* Entitlement to contribution-based benefits retained for earnings between £107 and £146 per week.

Class 1A (employers)	13.8% on employee taxable benefits
Class 1B (employers)	13.8% on PAYE Settlement Agreements
Class 2 (self-employed)	Flat rate per week £2.65 small earnings exception £5,595 p.a.
Class 3 (voluntary)	Flat rate per week £13.25
Class 4 (self-employed)	9% on profits between £7,605 and £42,475 plus 2% on profits over £42,475

National Insurance Contributions build up your entitlement to specific benefits such as the State Pension and the amount you pay depends upon how much you earn so it’s important to ensure that professional advice is sought and compliance properly dealt with.

Call Prime Today - we're here to help

From calculating your contributions and submitting your NICs to advising on pay packages that minimise tax and NIC, Prime has a team of experts who can provide help with any areas of concern regarding your National Insurance. Please contact us for further information.

Coventry - 024 7651 8555 or Solihull - 0121 711 2468

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