National Insurance from April 2011

theesel1994

Can someone give me a figure that I will start to pay National Insurance from beginning in April 2011?

Reading various places gives conflicting figures.

Today's budget suiggest the current figure of £110 per week will increase by £21 a week above inflation. A previous pre-Budget report suggested those on less than £20,000 a year would be better off. Another website suggests (before this latest budget) the £110 was increasing to £135 mper week.

Can anyone make any sense of it?

00ec25

you have misunderstood

the £21 per week applies to the point at which employers will have to pay their NI contributions, not the point at which you as an employee pay NI, (remember both the employer and empoyee pay NI but at different rates and different start points)

pre budget reports are now irrelevant, they are refer to thiongs which are not in the budget that was actually read out and so no longer exist

theesel1994

Pre-Budget Reports are not irrelevent - they are in effect a mini Budget before the Budget.

As for national Insurance rates currently an employEE pays 11% on earnings above £110 per week up to £844 aweek and 1% on earnings above £844. The employER pays 12.8% on all earnings above £110. It is the same starting point for both the employee and employer. All I'm asking is what this estimated starting figure will be for April 2011 (estimated as it is based on inflation).

00ec25

theesel1994 wrote: »

All I'm asking is what this estimated starting figure will be for April 2011 (estimated as it is based on inflation).

no one can tell you yet
taken from the budget statement today...




Existing legislation requires the Government to increase personal allowances and rate limits by the annual percentage increase to the RPI for the year to September preceding the new tax year. The Government will make the Order to set the relevant amounts for 2011-12 after the relevant percentage is published in October 2010.

The Government has announced that for 2011-12 it will over-ride the amounts that will be set in the Order for the personal allowance for those aged under 65 and the basic rate limit. Decisions on other allowances will be made at the appropriate time. The exact amounts of the basic rate limit for 2011-12 will not be known until publication of the RPI for September.

artha

00ec25 wrote: »

no one can tell you yet
taken from the budget statement today...




Existing legislation requires the Government to increase personal allowances and rate limits by the annual percentage increase to the RPI for the year to September preceding the new tax year. The Government will make the Order to set the relevant amounts for 2011-12 after the relevant percentage is published in October 2010.

The Government has announced that for 2011-12 it will over-ride the amounts that will be set in the Order for the personal allowance for those aged under 65 and the basic rate limit. Decisions on other allowances will be made at the appropriate time. The exact amounts of the basic rate limit for 2011-12 will not be known until publication of the RPI for September.

Has the PA for over 65s always been moved in the same way?

Is there any indication as to what will happen to the over 65 PA as pre budget there was talk of it being frozen and effectively letting the rest of the population catch up? Or is this one of allowances that will be made at the appropriate time?

If it is frozen it then begs the question as to whether the claw back earnings limit will stay?