UK Tax News from TaxPenny

UPDATE: The Official Tax and National Insurance Rates for 2011/2012 are now available on our tax calculator. Use it to see how you will be affected by next years changes.

Even though 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.