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    How is this calculated each month? What are the thresholds etc?

    See: http://www.direct.gov.uk/en/MoneyTax...Tax/DG_4015904

    If you're employed
    if you earn above £110 a week (the 'earnings threshold') and up to £844 per week you pay 11 per cent of this amount as 'Class 1' NICs
    you also pay one per cent of earnings above £844 a week as Class 1 NICs
    you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme

    If you're self-employed
    you pay 'Class 2' NICs at a flat rate weekly amount of £2.40
    you also pay 'Class 4' NICs as a percentage of your taxable profits - you pay eight per cent on annual taxable profits between £5,715 and £43,875 and one per cent on any taxable profit over that amount
    if your earnings in the 2009-10 tax year are expected to be less than £5,075 then you may be entitled to the Small Earnings Exception (SEE), meaning you don't have to pay any Class 2 NICs - you can apply for SEE for the 2009-10 tax year on form CF10
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