National Insurance
Earnings limits Contribution Table Letter
A* B* C* D* E*
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Below £87 weekly
Below £377 monthly Nil Nil Nil Nil Nil
Below £4,524 yearly
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£87 to £100 weekly
£377 to £435 monthly 0% 0% Nil 0%** 0%
£4,524 to £5,225 yearly
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£100.01 to £670 weekly
£435.01 to £2,904 monthly 11% 4.85% Nil 9.40% 4.85%
£5,225.01 to £34,840 yearly
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Over £670 weekly
Over £2,904 monthly 1% 1% Nil 1% 1%
Over £34,840 yearly
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*A Full rate - not contributing to pension scheme
*B Married women's reduced rate - not contributing to pension scheme
*C Exempt
*D Full rate - contributing to pension scheme
*E Married women's reduced rate - contributing to pension scheme **A rebate of 1.6 per cent is due on these earnings. The amount of NI contributions due is then reduced by this rebate but if no National Insurance contributions are due, the employee is not entitled to the rebate.
Married Woman's Reduced Rate - IMPORTANT
Some married women and widows have the right to pay reduced rate National Insurance contributions. If you have this right, the council must hold a valid 'certificate of election' issued by the Inland Revenue National Insurance Contributions Office.
This right is lost if you are under the age of 60, and you get divorced or your marriage is annulled. By law, you must inform your employer that the marriage has ended. The Payroll Section must be notified immediately of this change in order that standard rate contributions can be deducted from pay.
Exemptions from National Insurance
Age Exemption If you are over the State Pension Age (currently 60 for women and 65 for men) you do not have to pay National Insurance contributions on your earnings.
However, deductions will continue to be made from your pay until you obtain a 'certificate of age exception' from HM Revenue and Customs National Insurance Contributions Office (HMRCNICO), Contributor Caseworker, Benton Park View, Newcastle upon Tyne, NE98 1ZZ. The certificate must be forwarded to the Payroll Office.
Multiple Job Exemption Are you already paying the maximum amount of National Insurance contributions throughout the year and take on another job from which contributions are also deducted? You can apply to the HMRCNICO for form CA2700. If your employer holds this form, National Insurance contributions will be deducted at 1 per cent on earnings above £100 per week or £435 per month.
Find out more by contacting your nearest Jobcentre, Jobcentre Plus or Social Security office and asking for leaflet CA72 - Deferring Payment.
