Who is required to pay National Insurance contributions?

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Who is required to pay National Insurance contributions?

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Vacation or part-time work Students are not required to pay National Insurance Contributions (NICs) on any form of student support. However, if you are working and your pay exceeds the earnings threshold for 2008/09 of £105 per week (or £455 per month) you must pay Class 1 (earnings-related) contributions. Your employer deducts these from your wages, and the rate of contribution is 11 per cent of all earnings above £105 per week but below £770. All earnings above £770 per week incur a 1 per cent rate of contribution. Example: In 2008/09 Bob earns £800 per week. He pays no National Insurance on the first £105. He pays 11 per cent on the next £665, and then 1 per cent on the remaining £30. Therefore his weekly National Insurance contribution is £73.45. If you are self-employed, you have to pay flat-rate Class 2 contributions of £2.30 for each week of self-employment if your income exceeds £4,825 in the 2008/09 tax year (if you have a lesser income you must apply for an exception). You al

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