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BUDGET

16 MARCH 2016

NATIONAL INSURANCE CONTRIBUTIONS

Class 1 (Employees)

2016/17

2015/16

Employee

Employer

Employee

Employer

NIC rate

12% 13.8%

12% 13.8%

No NICs on the first:

Under 21*

£155 pw £827 pw

£155 pw £815 pw

21 & over*

£155 pw £156 pw

£155 pw £156 pw

NICs rate charged up to

£827 pw No limit

£815 pw No limit

2% NICs on earnings over

£827 pw

N/A

£815 pw

N/A

* For 2016/17: 25 years for apprentices

Employment allowance

2016/17

2015/16

Payable per business

£3,000

£2,000

Not available in 2016/17 if a director is the sole employee

Earnings limits or thresholds

2016/17

2015/16

Weekly Monthly Annual

Weekly Monthly Annual

£

£

£

£

£

£

Lower earnings limit

112

486 5,824

112

486 5,824

Secondary earnings threshold

156

676 8,112

156

676 8,112

Primary earnings threshold

155

672 8,060

155

672 8,060

Upper earnings limit

827 3,583 43,000

815 3,532 42,385

Upper secondary earnings

threshold (under 21)*

827 3,583 43,000

815 3,532 42,385

* For 2016/17: under 25 years for apprentices

Contracted-out rebate

2016/17

2015/16

On band earnings for salary related schemes only

N/A

£112–£770 pw

Employer rebate

N/A

3.4%

Employee rebate

N/A

1.4%

Class 1A (Employers)

2016/17

2015/16

Most taxable employee benefits

13.8%

13.8%

Class 2 (Self-Employed)

2016/17

2015/16

Flat rate

£2.80 pw £145.60 pa

£2.80 pw £145.60 pa

Small profits threshold

£5,965 pa

£5,965 pa

Class 4 (Self-Employed)

2016/17

2015/16

On profits

£8,060–£43,000 pa 9%

£8,060–£42,385 pa 9%

Over £43,000 pa 2%

Over £42,385 pa 2%

Voluntary

2016/17

2015/16

Class 3 flat rate

£14.10 pw £733.20 pa

£14.10 pw £733.20 pa

Class 3A if state pension

age before 6/4/16

amount depending on age

amount depending on age