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Budget
REV 2
17 April 2002
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.
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% |
Press enquiries: 020 7438 6692 / 6706 / 7327
(out of hours: 07860 359544)
Non-media enquiries: 020 7438 6420
(office hours only)
Further information and all published documents relating to Budget 2002 may also be found on the Internet at the following addresses:
Inland Revenue http://www.inlandrevenue.gov.uk/
HM Customs and Excise http://www.hmce.gov.uk/
Budget 2002 Press Notices: index
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