|
|
National Insurance Contributions
For employees' NIC, see Employee Taxation.
Self-employed people pay:
* weekly Class 2 contribution of £2.05, unless they claim exception for small earnings (below £4,215).
* Class 4 NIC at 8% of taxable profits between £4,745 and £31,720. Profits over £31,720 will be charged at 1%. This is assessed and paid with the self-assessment income tax on profits.
Class 3 voluntary NIC may be paid at £7.15 per week by someone who is not in work but who wishes to maintain state pension rights. |
| |
|
| |
| Someone who is both employed and self-employed will pay Class 1, Class 2 and Class 4
NIC. It is possible to apply for deferment of Class 4, and sometimes Class 2 as well, so that the Class 1 paid on earnings can be taken into account. Class 4 will then be charged at only 1%, and the overall liability will be settled at a later date. |
|
