National Insurance Contributions (NICs)

Increases in your National Insurance Contributions

From 6 April 2011 the new rates are;

Employees          12%

Employers           13.8%

Self employed     9%

For the self employed this liability is included as part of your self assessment liabilities each year. Please do  not confuse it with the weekly flat rate amount of £2.40 per week which is often paid on a monthly basis!

P11D /Benefits in Kind             13.8%

For earnings /profits above £43,875 employees/the self employed will pay 2% instead of the current 1%.

Class 2 Contributions

From April 2011 your contributions will be due on;

31 January in the year and

31 July - 6 months later

which are the same dates as under self assessment.

So from April 2011 taxpayers will receive two payment requests from the Revenue, one in October  showing payment is due in January and the other in April showing payment is due in July.

To move this away from the current system  then in the first year  only the monthly direct debits will stop for a short period and start again so as to match the new due dates. There will also be a new 6 monthly direct debit option which will be collected in January and July each year.