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Contribution rates

The rate of employer&#39s National Insurance contributions is confirmed at 12.8% and the rate for employees at 11%, with a 1% surcharge on earnings in excess of £595 per week.

Levels of National Insurance contributions for tax year 2003/2004 were set as follows:-


The Primary Threshold (ie. the threshold above which employee&#39s NI contributions are payable) is confirmed at £89 per week. The upper limit is increased to £595 per week (£30,940 per annum).


The Secondary Threshold (ie. the level of an employee&#39s earnings at which the employer begins to pay NI contributions) is confirmed at £89 per week.


The Class 4 rate is 8% of profits between £4,615 pa and £30,940 pa with a 1% surcharge on profits in excess of £30,940. The Class 2 flat-rate contribution remains at £2 per week and becomes due when profits reach £4,095 pa.


The flat-rate of Class 3 voluntary contributions is raised to £6.95 per week.


Lifeboat forms partnership with Domain

Lifeboat Financial Group has entered into a partnership with mortgage network Domain Financial.The exclusive partnership will enable Domain to offer mortgage expertise to Lifeboat advisers will Lifeboat will offer protection to Domain intermediaries.Domain and Lifeboat aim to expand rapidly to become one of the major players in the market within the next few years.


In the Press Release (Rev/C&E1) reference is made to the Government taking forward work to replace the offshore fund regime with new rules in the Finance Bill 2003. No definite proposals are put forward at this stage and consultation will continue. However, the results of the consultation so far are made available. The majority ruled […]

Cater Allen move set to drive out small accounts

IFAs are having to tell clients they are no longer rich enough to benefit from private bank accounts with Cater Allen, after the firm scrapped interest payments on balances below £5,000.The move has been called unfair and harsh by advisers. It follows a decision by the bank that it needs to encourage the right type […]


For investment advisers and providers perhaps the most worrying aspect of all of this is the apparent Inland Revenue concern over tax deferment – even though the current tax regime specifically provides for this and incorporates provisions for dealing with this, ie. by subjecting the gains of non-distributor funds (even internal capital gains) to income […]

Solving the income puzzle

There is a puzzle at the centre of financial markets. The global economy is growing, there are signs of inflation and interest rates are going up, yet yields remain low. In this article, James Foster, manager of the Artemis Monthly Distribution fund, unpicks this conundrum and looks at where investors can find income. There is […]


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