UK Tax History

Historical Information on the UK Tax Regime. Historical Tax rates and Allowances.

National Insurance

Historic National Insurance rates

percentShown below are the rates of National Insurance that have existed for the past 30 years.

There have been a large number of reforms made to the basis of National Insurance to be paid. Most notable by Nigel Lawson and Gordon Brown.

These changes mainly involved reducing the burden of Nation Insurance levied on the lower paid, and companies that employ them.

They also involved increases in the general level of National Insurance levied on average.

1972-73 1973-74 1974-75 1975-76 1976-77 1977-78 1978-79 1979-80 1980-81 1981-82
Employees
Lower weekly earnings Limit
Upper weekly earnings Limit
Employees rate "contracted in" 6.50% 6.75% 7.75% 8.75%
"contracted out"
Employers
Employers rate 10% 10% 10.2% 10.20%
N.I.Surcharge 3.50% 3.50% 3.50% 3.50%
Class 2

 

1982-83 1983-84 1984-85 1985-86 1986-87 1987-88 1988-89 1989-90 1990-91 1991-92
Employees
Lower Rate 2%on first 2%on first 2% on first
Lower weekly earnings Limit £35.50 £35.50 £38 £41 £43 £46 £52
Upper weekly earnings Limit £265 £265 £285 £305 £325 £350 £390
N.I.Surcharge 3.50% 2.00% 1.00%
Employees rate "contracted in" 9% 9% 9% 9% 9% 9% 9% 9% 9% 9%
"contracted out" 6.75% 7%
Employers
Employers rate 10.20% 10.40% 10.40% 10.40% 10.45% 10.45% 10.45% 10.45% 10.45% 10.45%
Class 2 £4.75 £5.15
Class 3 £5.05
Class 4 6.3% 6.3%

 

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02
Employees
Lower Rate 2%on first 2%on first 2%on first 2%on first 2%on first 2%on first 2%on first 0%on first 0%on first 0%on first
Lower weekly earnings limit £54 £56 £57 £58 £61 £62 £64 £66 £67 £72
employees threshold £76 £87
employers threshold £81 £84 £87
Upper weekly earnings limit £405 £420 £430 £440 £455 £465 £485 £500 £535 £575
Employees rate "contracted in" 9% 9% 10% 10% 10% 10% 10% 10% 10% 10%
Employees rate "contracted out" 8.40% 8.40%
Employers
lower rate bands
3%
  £64-£109
abolished in April 1999
5%
  £110-154 0% on first
Taylor reforms
7%
  £155-209 £81
£209 + £81 and above
Employers rate "contracted in" 10.45% 10.45% 10.45% 10.45% 10.20% 10% 10% 12.20% 12.20% 11.90%
Employers rate "contracted out"1 9.20% 8.90%
Employers rate "contracted out" 2 11.30%
Class 2 £5.35 £5.65 £6.55 £2 £2
Class 3 £5.25
Class 4 6.35% 6% 7% 7%
Class 4 annual lower limit 7310 7530 4385

 

2002-03 2003-04 2003-04 2004-05 2005-06
Employees
Lower rate 0%on first: 0%on first: 0%on first: 0%on first: 0%on first:
Lower weekly earnings limit £75 £77 £77 £79 £82
employees threshold £89 £89 £89 £91 £94
employers threshold £89 £89 £89 £91 £94
Upper weeekly earnings limit £585 £595 £595 £610 £640
Employees rate "contracted in" 10% 11% 11% 11% 11%
Employees rate "contracted out" 8.40% 9.40% 9.40% 9.40% 9.40%
Upper rate 0% 1% 1% 1% 1%
Employers
Employers rate "contracted in" 11.80% 12.80% 12.80% 12.8% 12.80%
Employers rate "contracted out" 1 8.30% 9.30% 9.30% 9.30% 9.30%
Employers rate "contracted out" 2 10.80% 11.80% 11.80% 11.80% 11.80%
Class 2 weekly contribution £2 £2 £2 £2 £2
Class 3 £6.95
Class 4 7% 8% 8% 8%
Class 4 upper rate 0% 1% 1% 1%

 

Employers rate "contracted out" 1 contracted out in final salary sceme
Employers rate "contracted out" 2 contracted out in money purchase sceme

 

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