Rates and limits (Table D)

The percentage rates of NIC and most of the thresholds remain unchanged. There is a £2pw increase in the "lower earnings limit" to £97pw. Pay above this level has to be reported under the PAYE system and qualifies the recipient for benefits, but no NIC become payable until earnings reach the "primary threshold" of £110pw.

Last year the Chancellor announced further increases in NIC for both employers and employees, but these are not due to come into effect until 6 April 2011. The current intention is that 1% will be added to the rates of employee, employer and self-employed contributions. The primary threshold will be increased in order to compensate those on lower earnings. Only people earning £20,000 or more should pay more in NIC as a result of these increases.