Tax Rates 2014/15

National Insurance Contributions 2014/15

Class 1 (Employees)

From 6.4.2012, only employment with a salary-related pension scheme can benefit from the lower contracted-out NIC rates.

  Contracted In Contracted Out
Employee contributions
- on earnings £153.01 - £770pw 12.0% 10.6%
- on earnings £770.01 - £805pw 12.0% 12.0%
- on earnings above £805pw 2.0% 2.0%
Employer contributions
- on earnings £153.01 - £770pw 13.8% 10.4%
- on earnings above £770pw 13.8% 13.8%

Employer contributions (at 13.8%) are also due on most taxable benefits (Class 1A) and on tax paid on an employee’s behalf under a PAYE settlement agreement (Class 1B).

Class 2 (Self-employed)

Flat rate per week £2.75
Small earnings exception: profits per annum £5,885

Class 3 (Voluntary)

Flat rate per week £13.90

Class 4 (Self-employed)

On profits £7,956 - £41,865 9.0%
On profits over £41,865 2.0%