If you're employed

if you earn above £97 a week (the 'earnings threshold') and up to £645 per week you pay 11 per cent of this amount as 'Class 1' NICs
you also pay one per cent of earnings above £645 a week as Class 1 NICs
you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme
Check current NIC rates on HMRC website (opens new window)


If you're self-employed

you pay 'Class 2' NICs at a flat rate weekly amount of £2.10
you also pay 'Class 4' NICs as a percentage of your taxable profits - you pay eight per cent on annual taxable profits between £5,035 and £33,540 and one per cent on any taxable profit over that amount
if your earnings in the 2006-2007 tax year are expected to be less than £4,465 then you may be entitled to the Small Earnings Exception (SEE), meaning you don't have to pay any Class 2 NICs - you can apply for SEE for the 2006-2007 tax year on form CF10