National Insurance

Alignment of NIC and income tax thresholds will be achieved with effect from 6 April 2001. 2001/02 thresholds and rates are detailed in the table below.

2001/2002 National Insurance Contributions (NICs)
Class 1 - not contracted out	Employer	Employee
Weekly earnings bands
Payable on earnings
Up to £87	Nil	Nil
£87.01 - £575	11.9%	10%
Over £575	11.9%	£48.80 max
Men 65 and over and women 60 and over	as above	Nil
Class 1A- On relevant benefits	11.9%	Nil
Class 2- Self employed	£2.00 per week
Limit of net earnings for exception	£3,995 pa
Class 3- Voluntary	£6.75 per week
Class 4*- Self employed on profits	7%
£4,535 - £29,900	£1,775.55 max
*Exemption applies if state retirement age is reached by 6 April 2001

NIC tip

If you are both employed and self-employed, you may be paying too much in NICs. The maximum payable for 2000/01 is £2,432.70. If you pay too much, you are entitled to a repayment.