Budget Summary 2014 - page 16

page 16
NATIONAL INSURANCE CONTRIBUTIONS
Class 1 (Employees)
Not Contracted-out of State Second Pension (S2P)
2014/15
2013/14
Employee
No NICs on the first £153 pw
No NICs on the first £149 pw
12% NICs on £153.01–£805 pw 12% NICs on £149.01–£797 pw
2% NICs over £805 pw
2% NICs over £797 pw
Employer
No NICs on the first £153 pw
No NICs on the first £148 pw
13.8% NICs over £153 pw
13.8% NICs over £148 pw
Employment allowance per business
2014/15
2013/14
Offset against employer’s Class 1 NICs
£2,000
N/A
Earnings limit or threshold
2014/15
2013/14
Weekly Monthly Annual
Weekly Monthly Annual
£
£
£
£
£
£
Lower earnings limit
111
481 5,772
109
473 5,668
Secondary earnings threshold
153
663 7,956
148
641 7,696
Primary earnings threshold
153
663 7,956
149
646 7,755
Upper accrual point
770 3,337 40,040
770 3,337 40,040
Upper earnings limit
805 3,489 41,865
797 3,454 41,450
Contracted-out S2P rebate
2014/15
2013/14
Reduction on band earnings*
£111.01–£770 pw
£109.01–£770 pw
Employer rate reduction
3.4%
3.4%
Employee rate reduction
1.4%
1.4%
*Salary related schemes only.
Class 1A (Employers)
2014/15
2013/14
Most taxable employee benefits
13.8%
13.8%
Class 2 (Self-Employed)
2014/15
2013/14
Flat rate
£2.75 pw £143.00 pa
£2.70 pw £140.40 pa
Small earnings exception
£5,885 pa
£5,725 pa
Class 4 (Self-Employed)
2014/15
2013/14
On profits
£7,956–£41,865 pa 9%
£7,755–£41,450 pa 9%
Over £41,865 pa 2%
Over £41,450 pa 2%
Class 3 (Voluntary)
2014/15
2013/14
Flat rate
£13.90 pw £722.80 pa
£13.55 pw £704.60 pa
BUDGET
19 MARCH 2014
I...,6,7,8,9,10,11,12,13,14,15 17
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