National Insurance

There is no immediate change in the main rates of class 1 employers and employees national insurance from 6 April 2009. However, a large rise in class 1 national insurance is proposed from 6 April 2011 to 11.5% for employees, to 13.3% for employers, and the additional rate payable above the upper limit is to increase from 1% to 1.5%. This would bring in a significant amount of additional revenue for the Government beyond 2011.

Class 3 national insurance is a voluntary class normally paid by people who want to top up their NI contributions in order to receive the full state pension. This voluntary rate is increasing from £8.10 per week to £12.05 per week from 6 April 2009. So if you need to top-up your NI contributions it would be best to do this while the rate remains at £8.10 per week.