REV 2
17 April 2002
NATIONAL INSURANCE RATES 2003-04
The Chancellor today announced an increase in the rates of National Insurance contributions (NICs) which will be introduced in 2003-04. There will be an additional 1 per cent national insurance contribution (NIC) by employers, employees and the self-employed on all earnings above the NICs threshold of £89 per week. This is in addition to existing rates of contribution below the upper earnings limit for employees and the upper profits limit for the self-employed.
This means that the starting point for both employers' and employees' NICs in 2003-04 will be £89 per week and no employee will pay NICs on earnings below this amount.
DETAILS
Rates and thresholds are set out below.
| 2002-03 | 2003-04 | |
| Primary threshold | £89 per week | £89 per week |
| Secondary threshold | £89 per week | £89 per week |
| Employees' primary class 1 rate on earnings between primary threshold and upper earnings limit | 10% | 11% |
| Employees' primary class 1 rate on earnings above upper earnings limit | - | 1% |
| Employers' secondary class 1 rate on earnings above secondary threshold | 11.8% | 12.8% |
| Lower profits limit (for self-employed Class 4 contribution) | £4615 | £4615 |
| Class 4 rate on profits between lower and upper profits limit | 7% | 8% |
| Class 4 rate on profits above upper profits limit | - | 1% |
INLAND REVENUE PRESS OFFICE
Press enquiries: 020 7438 6692 / 6706 / 7327
(out of hours: 07860 359544)
Non-media enquiries: 020 7438 6420
(office hours only)
GOVERNMENT DEPARTMENT INTERNET SITES
Further information and all published documents relating to Budget 2002 may also be found on the Internet at the following addresses:
Inland Revenue www.inlandrevenue.gov.uk
HM Customs and Excise www.hmce.gov.uk