Following last month’s budget, it is, for most people, a case of no change despite several rumours circulating in the previous weeks. The main contents with regard to National Insurance were as follows:
Class 1
This is the National Insurance paid by employees and employers on wages and salaries. The rates for 2018/19 are as follows:
Employees Employers
Up to £116 per week Nil Nil
£116.01 to £162 per week (see below) 0% Nil
£162.01 to £892 per week 12% 13.8%
£892.01 and above per week 2% 13.8%
Class 1A
This is paid by employers on relevant benefits at a rate of 13.8%.
Class 2
This is the old self-employed stamp. It is now collected through the self assessment system at a rate of £153.90 per annum, equivalent to £2.95 per week. Originally due to be abolished from 2018, this is now delayed.
Class 3
This is a voluntary stamp payable by people who have no other contributions but wish to preserve their entitlement to earnings related benefits. It is payable at a rate of £14.65 per week.
Class 4
This is the main charge to National Insurance for self employed people. Following the governments U-Turn earlier in the year this will now remain unchanged at the following rates:
Profits under £8,424 Nil
Profits £8,424 – £46,350 9%
Profits over £46,350 2en
Again, people above the State Retirement Age are exempt.