UK Social Security
Our tax guide for freelance contractors working in United Kingdom
Generally, for individuals who work in the UK, National Insurance contributions are payable on their earnings. For the tax year 2006/2007 employees must contribute at a rate of 11% on weekly earnings between £97 and £645 and employers are liable at a rate of 12.8% on an employee’s earnings above £97 with no ceiling. Contributions are collected under the Pay-as-you-Earn (PAYE) system.
Employers must pay National Insurance contributions on the provision of taxable benefits in kind (for example, housing provisions or company car benefits).