Budget 2007 Introduction Personal Income Tax National Insurance Contributions Employees Savings & Investments Trusts Capital Gains Tax Stamp Duty Land Tax Inheritance Tax Corporation Tax Business Tax Value Added Tax Other Measures Tax Tables National Insurance

National Insurance Contributions Rates and limits (Table D) The percentage rates of NIC paid by individuals remain unchanged. There are small decreases in the rates paid by employers who offer their employees a contracted-out pension scheme. The bands at which the rates change (the Primary Threshold and Upper Earnings Limit) increase this year in line with inflation. In April 2008 there will be a substantial increase in the UEL and from April 2009 it will be aligned with the 40% threshold for income tax. This represents a tax increase because more earnings will be charged to NIC at the higher rates (9.4% or 11% for employees, 8% for self-employed) and less at 1%.