Pre Budget Report 2008 - National Insurance

One of the main headlines of the Chancellor, Alistair Darling 2008 Pre Budget Report is the increase in the rate of National Insurance Contributions from April 2011 by 0.5%. The Chancellor announced he proposes the increase for all employers and employees as a move to help fund his current borrowing.

To help cushion the increase the Chancellor advised that the starting point for National Insurance is to be raised to that of income tax so that no-one on less than £20,000 will see there NI contributions increase.

The National Insurance Contribution levels for 2009/10 were also announced in the report, these are to increase in line with inflation to a starting point of £110 per week for employers, employees and the self employed. The upper earnings and profits limits are to increase from £770 to £844 per week. For the self employed the rate of class 2 contributions will increase to £2.40 per week.

Back to Main News Page