Pre Budget Report 2009 - National Insurance

back to news list

04/01/1900

National Insurance (NI) Contributions

The Chancellor added a further 0.5% increase to all the main rates of National Insurance Contributions (NICs), starting in 2011/12. This was virtually a repeat of what he announced last year and means all NIC rates will be 1% higher from April 2011

To reduce the effect of the higher rates on low earners, the Chancellor said that the starting point for NICs would rise to £570 above the personal allowance in 2011/12.

The impact of these changes will mainly be felt by middle and high earners. When combined with the introduction of 50% income tax next tax year, it will mean that from April 2011 someone with earned income of £150,000 plus will only keep 48p out of every extra £1 they earn.


All the information and views given in this Bulletin are presented for general consideration only. Accordingly, Capital Ideas can accept no responsibility for any loss occasioned as a result of any action taken or refrained from as a result of the contents hereof. Readers and must always seek independent advice before taking
or refraining from taking any action.

The contents of this Bulletin are based on the proposals put forward by the
Chancellor in his Pre Budget Report. These need to be approached with caution as the details may change before the Finance Bill is presented to Parliament

< end of article >

back to news list