29 National insurance contributions

29 National insurance contributions

Dividends do not attract national insurance contribution payments. Salaries and director’s fees, however, trigger Class 1 contributions from both the employer company and the recipient employee or director. The contributions paid by the employee are known as primary contributions¹ and those paid by the company, secondary contributions².

For the tax year 2011/12, Class 1 contributions are payable as follows³:

1. 29.1

       on weekly earnings not exceeding £139, the employee’s primary contributions and the employer’s secondary contributions are both nil;

2. 29.2

       on weekly earnings exceeding £139 but not exceeding £817, the employee’s