McCabes - Tax Consultancy Services

2005 Budget summary cards by McCabes.

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National Insurance

Table D
Rates and limits for 2005/06

Class 1	Weekly	Monthly	Yearly
Primary Threshold - employees	£94	£408	£4,895
Upper Earnings Limit - employees	£630	£2,730	£32,760
Secondary Threshold - employers	£94	£408	£4,895

Employer's Contribution	Contracted In	Contracted Out
		Salary Related Scheme	Money Purchase Scheme
On earnings up to threshold	Nil	Nil	Nil
On earnings between threshold and upper earnings limit	12.8%	9.3%	11.8%
On earnings above upper earnings limit	12.8%	12.8%	12.8%

Employee's Contribution

Contracted in: 11% on earnings between lower and upper limits, 1% above upper limit.
Contracted Out: 9.4% on earnings between lower and upper limits, 1% above upper limit.

Earnings over £82 per week qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings exceed £94 per week.

The reduced Class 1 contributions payable by certain married women and widows rises to 4.85% for earnings between £94 and £630 per week, 1% above £630 per week.

Class 2 (Self-employed)

Earnings over £4,345 per year

£2.10 per week

Class 3 (Voluntary)

No limit applicable

£7.35 per week

Class 4 (Self-employed)

Profits between £4,895 and £32,760

Profits above £32,760