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National Insurance (NIC) - Rates 2005/6

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Here is the complete list of the National Insurance (NIC) Rates for the 2005/6 tax year. Make sure you read our Small Business Guide to National Insurance to determine which Class of NIC's you should pay.

For NI rates for 2006/7 and 2007/8 - visit our main Tax Rates list.

Self-employed people are liable to pay Class 2 NICs for every week of self employment, providing they are age 16 or over and under State Pension age and are normally self-employed. The self-employed may also be liable to pay Class 4 NICs when any net profits exceed a specified amount.

You should consult the Inland Revenue FAQ section, or an accountant if you are unsure what your NIC liabilities are.

All figures are weekly unless shown otherwise.

£ per week 2004-05 2005-06 Lower earnings limit, primary Class 1 £79 £82 Upper earnings limit, primary Class 1 £610 £630 Primary threshold £91 £94 Secondary threshold £91 £94 Employees’ primary Class 1 rate between primary threshold and upper earnings limit 11% 11% Employees’ primary Class 1 rate above upper earnings limit 1% 1% Employees’ contracted-out rebate 1.6% 1.6% Married women’s reduced rate between primary threshold and upper earnings limit 4.85% 4.85% Married women’s rate above upper earnings limit 1% 1% Employers’ secondary Class 1 rate above secondary threshold 12.8% 12.8% Employers’ contracted-out rebate, salary-related schemes 3.5% 3.5% Employers’ contracted-out rebate, money-purchase schemes 1% 1% Class 2 rate £2.05 £2.10 Class 2 small earnings exception £4,215 per year £4,345 per year Special Class 2 rate for share fishermen £2.70 £2.75 Special Class 2 rate for volunteer development workers £3.95 £4.10 Class 3 rate £7.15 £7.35 Class 4 lower profits limit £4,745 per year £4,895 per year Class 4 upper profits limit £31,720 per year £32,760 per year Class 4 rate between lower profits limit and upper profits limit 8% 8% Class 4 rate above upper profits limit 1% 1%

Posted March 20, 2005