For up to date details of Income Tax and NIC rates for Employees, Workers and Freelancers see here.
National Insurance Contributions for 2010/11 and 2011/12:
The starting point for employees and workers to pay NIC is £110 per week, rising to £139 per week from April 2011 (you do not pay NIC on earnings under this amount).
You will pay 11% of the amount you earn (between the starting point and upper earnings limit) as Class 1 NIC’s – rising to 12% in April 2011. You will pay a lower amount if you are member of your employer’s contracted out pension scheme).
The upper earnings limit is £844 per week, decreasing to £817 from April 2011.
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
Photo by Andy Melton – CC
