National Insurance Contributions

Summary

The requester asked for details on employee National Insurance contributions in the Isle of Man, and the Treasury responded by providing the specific earnings thresholds and percentage rates effective from April 2018.

Key Facts

• National Insurance contribution rates for employees and employers remained unchanged from April 2017 to April 2018.
• The Lower Earnings Limit (LEL) increased to £116 per week from April 2018.
• Employee contributions for Not Contracted-out earnings above the threshold up to the Upper Accrual Point are 11%.
• Employee contributions for Contracted-out Salary related earnings above the threshold up to the Upper Accrual Point are 9.4%.
• The Upper Earnings Limit (UEL) for weekly earnings is set at £784.

Data Disclosed

• £116
• £118
• £770
• £784
• £503
• £512
• £3337
• £3398
• £6032
• £6136
• £40040
• £40768
• 11%
• 12.8%
• 1%
• 9.4%
• 9.1%
• 6 April 2017
• 6 April 2018
• 361201

Original Request

Can you please set out the ni contributions an employee is required to make.

Data Tables (2)

Full Response Text

Freedom of Information Seyrsnys Fysseree

The Treasury Government Office, Douglas Isle of Man, IM1 3PU

Telephone: (01625) 685605 Email: FOI.Treasury@gov.im

Government Website: www.gov.im

Your ref: ### Our ref: 361201 19 March 2018

Dear ###

We write further to your request which was received on 6 March 2018 which states:

"Can you please set out the ni contributions an employee is required to make."

Our response to your request is as follows: Whilst the information is publicly available directly from the Division or on the Government website for ease of reference the threshold and percentage rates for Class 1 employee deductions for both Not Contracted-out and Contracted-out Salary related contributions are set out below as extracts taken from the publications. From 6 April 2017 the rates payable for employee and employer National Insurance Contributions (NICs) remained unchanged in the Isle of Man (IOM). The Lower Earnings Limit (LEL) increased to £113 per week, the Primary and Secondary thresholds remained aligned and unchanged (except for the monthly figure which increases to £512), the Upper Accrual Point (UAP) and the Upper Earnings Limit (UEL) remained unchanged. From 6 April 2018 the rates payable for employee and employer National Insurance Contributions (NICs) will again remain unchanged in the Isle of Man (IOM). The Lower Earnings Limit (LEL) will increase to £116 from £113 per week, the Primary and Secondary thresholds will remain aligned and unchanged, the Upper Accrual Point (UAP) and the Upper Earnings Limit (UEL) will remain unchanged. These earning limits and rates are detailed below: Earnings Limits:

Lower Earnings Limit (LEL) Earnings Threshold (ET) employee; Primary Threshold (PT) employer; Secondary Threshold (ST) Upper Accrual Point (UAP) Upper Earnings Limit (UEL) Weekly £116 £118 £770 £784 Monthly £503 £512 £3337 £3398 Yearly £6032 £6136 £40040 £40768 Percentage Rates: Employee Employer Not Contracted-out Earnings above ET up to UAP 11% 12.8% Earnings above UAP up to UEL 11% 12.8% Earnings above UEL 1% 12.8% Contracted-out Salary related (COSR) Earnings above ET up to UAP 9.4% 9.1% Earnings above UAP up to UEL 11% 12.8% Earnings above UEL 1% 12.8% As noted above this information can also be obtained on the Government website by following the link below to the National Insurance page: https://www.gov.im/categories/tax-vat-and-your-money/income-tax-and-national- insurance/national-insurance-contributions/ General information and copies of current NI tables and guides are available there to view and download. Please quote the reference number 361201 in any future communications.

Your right to request a review

If you are unhappy with this response to your freedom of information request, you may ask us to carry out an internal review of the response, by completing a complaint form and submitting it electronically or by delivery/post to us at:

The Treasury Government Office, Douglas Isle of Man, IM1 3PU

Telephone: (01625) 685605 Email: FOI.Treasury@gov.im

An electronic version of our complaint form can be found by going to our website. If you would like a paper version of our complaint form to be sent to you by post, please contact me and I will be happy to arrange for this. Your review request should explain why you are dissatisfied with this response, and should be made as soon as practicable. We will respond as soon as the review has been concluded. If you are not satisfied with the result of the review, you then have the right to appeal to the Information Commissioner for a decision on; 1. Whether we have responded to your request for information in accordance with Part 2 of the Freedom of Information Act 2015; or 2. Whether we are justified in refusing to give you the information requested.
In response to an application for review, the Information Commissioner may, at any time, attempt to resolve a matter by negotiation, conciliation, mediation or another form of alternative dispute resolution and will have regard to any outcome of this in making any subsequent decision. More detailed information on your right to a review can be found on the Information Commissioner’s website at www.inforights.im/. Should you have any queries concerning this letter, please do not hesitate to contact me. Further information about freedom of information requests can be found at www.gov.im/foi.

I will now close your request as of this date.

Yours sincerely