McCabes - Tax Consultancy Services

2007 Budget summary cards by McCabes.

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National Insurance

Table D
Rates and limits for 2007/08

Class 1	Weekly	Monthly	Yearly
Primary Threshold - employees	£100	£435	£5,225
Upper Earnings Limit - employees	£670	£2,903	£34,840
Secondary Threshold - employers	£100	£435	£5,225

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%	9.1%	11.4%
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 £87 per week qualify for benefit, and must be reported under PAYE, but no NICs are payable until earnings exceed £100 per week.

The reduced Class 1 rate payable by certain married women and widows is 4.85% for earnings between £100 and £670 per week, 1% above £670 per week.

Class 2 (Self-employed)	Earnings over £4,635 per year	£2.20 per week
Class 3 (Voluntary)	No limit applicable	£7.80 per week
Class 4 (Self-employed)	Profits between £5,225 and £34,840	8%
	Profits above £34,840	1%