TaxPenny News

Eventhough NIC rates are staying put for most people throughout the coming tax year, from April 2011 there will be increases made for employers, employees and the self-employed.

Employee Class 1 NIC’s will be 12% and the 9% for Self Employed Class 4.

Those with pay in excess of £43,875 (Higher rate band) will pay 2% (increase from 1%) on pay and profits above that figure in addition to the lower rate contributions.

The rate for employers contributions will increase from 12.8% to 13.8%.

The government has proposed these increases with a protection barrier for lower paid individuals by raising the lower earnings level, therefore those earning less than £20,000 will pay less NIC’s overall.