Sun, Jan 23, 2011
Following on from our update late last year to reflect the tax rates and allowances for the upcoming 2011/2012 tax year, we have just completed the addition of a new unique feature to help you keep track of your personal taxation.
In the UK, employed people pay Class 1 National Insurance Contributions on PAYE income above the primary earnings threshold.
Whilst the standard calculation of National Insurance Contributions is carried out under the A code – there are many other codes to reflect the differing circumstances of individual taxpayers.
Our Tax Calculator has been updated to allow you to select your National Insurance Letter (NIC Letter) for any tax calculation made from 2009 onwards.
The NIC Letters currently supported are as follow:
- NIC Letter A – Standard Rate
- NIC Letter B – Married Woman’s and Widow’s Reduced Rate
- NIC Letter C – Over State Pension age (not contracted-out/contracted-out)
- NIC Letter D – Contracted-out Salary Related – standard rate
- NIC Letter E – Contracted-out Salary Related – reduced rate
- NIC Letter F – Contracted-out Money Purchase – standard rate
- NIC Letter G – Contracted-out Money Purchase – reduced rate
- NIC Letter J – Deferment (previously not contracted-out category C)
- NIC Letter L – Contracted-out Salary Related – deferment (previously contracted-out category C)
- NIC Letter S – Contracted-out Money Purchase – deferment
- NIC Letter X – No liability (all years)
We hope this will provide a more accurate calculation result and have integrated this with our net to gross (reverse tax) calculator too so you can plan more accurately too.