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National
Insurance Contributions
For employees' NIC, see Employee
Taxation page.
Self-employed people pay:
* weekly
Class 2 contribution of £2.20pw, unless they
claim exception or small earnings (below £4,635).
Usually paid monthly by direct debit.
*
Class 4 NIC at 8% of taxable profits between
£5,225 and £34,840. Profits over £34,840
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 £7.80
per week by someone who is not in work but who wishes
to maintain state pension rights. |
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| 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 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. |
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