Pre-Budget Report 2009 - national insurance contributions
It had already been announced that there would be a half percent increase in National Insurance Contributions (NIC) from next April. Today’s Pre-Budget Report has announced that there will be a further half percent increase from April 2011. This means that from April 2011 the main rate for employees will be 12% and for the self-employed will be 9%. The rate of employer contributions will be 13.8%.
To compensate lower earners the starting threshold will be raised by £570.
Costs are going up more steeply than otherwise expected from April 2011. The rates for the self-employed, employees and employers will all rise by 1% (previously expected to be at 0.5%). This will mean an effective highest rate of tax of 52%
Barry Hallam is a senior manager at Mercer & Hole. If you would like to discuss the contents of this post with Barry you can call him on 020 7353 1597.
Comments (0) Read through and enter the discussion with the form at the end