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Income Tax and National Insurance Contributions

For up to date details of Income Tax and NIC rates for Employees, Workers and Freelancers see here.


National Insurance Contributions 2012/13:


The starting point for employees and workers to pay NIC is £146 per week from April 2012 (you do not pay NIC on earnings under this amount).


You will pay 12% of the amount you earn (between the starting point and upper earnings limit) as Class 1 NIC. You will pay a lower amount if you are member of your employer’s contracted out pension scheme).


The upper earnings limit is £817 per week.


Self-employed individuals usually play Class 2 NIC’s – these entitle you to the basic State Pension and State Maternity Allowance. Class 2 NIC’s do not give you entitlement to Job Seekers Allowance, Statutory Sick Pay or the additional State Pension.


For detailed information click here


The Government will scrap Employer’s national insurance contributions for workers aged under-21 in April 2015 (if they are not higher rate tax payers).


Please note that the advice given on this website and by our Advisors is guidance only and cannot be taken as an authoritative interpretation of the law. It can also not be seen as specific advice for individual cases. Please also note that there are differences in legislation in Northern Ireland.

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