The percentage rates of NIC remain unchanged. There are small increases in the thresholds and also in the flat rate weekly payments under Classes 2 and 3.
The most striking change is a significant increase in the upper limit at which employee contributions drop from 11% to 1% and self-employed contributions drop from 8% to 1%. It was announced last year that this upper limit is to be aligned with the higher rate income tax threshold, probably in 2009/10. The increase widens the 11% band from £29,615 to £34,605: someone with high earnings will pay £499 extra on salary or £350 extra on self-employed profits as a result in 2008/09.