National Insurance Contributions (NICs) are made in order to ensure your eligibility for certain state benefits, such as a pension. How much you pay in NICs is dependent on several factors, most notably your income and whether you are employed or self-employed.
You will need to pay NICs if you are aged between 16 and 65, and you will be required to pay regardless of whether you are self-employed or employed. If you are employed and earning between �67 and �645 per week you will pay 11% of this sum. This is known as 'Class 1 NICs'. If you are earning above �645 per week, you will pay a further 1%. If, however, you are a member of your employer's own pension scheme you will pay a lower rate.
If you are self-employed you will pay Class 2 NICs of �2.10 per week. On top of this you will pay a percentage of your taxable profits above �5,035. This will generally be 8%, unless you are earning over �33,540 PA, in which case you will pay a further 1%. If your earnings are expected to be under �4,465 you may be entitled to the Small Earnings Exception. This means that you will not have to pay Class 2 NICs. You can find out if you are eligible for this on the Inland Revenue website.
You will need to pay NICs if you are aged between 16 and 65, and you will be required to pay regardless of whether you are self-employed or employed. If you are employed and earning between �67 and �645 per week you will pay 11% of this sum. This is known as 'Class 1 NICs'. If you are earning above �645 per week, you will pay a further 1%. If, however, you are a member of your employer's own pension scheme you will pay a lower rate.
If you are self-employed you will pay Class 2 NICs of �2.10 per week. On top of this you will pay a percentage of your taxable profits above �5,035. This will generally be 8%, unless you are earning over �33,540 PA, in which case you will pay a further 1%. If your earnings are expected to be under �4,465 you may be entitled to the Small Earnings Exception. This means that you will not have to pay Class 2 NICs. You can find out if you are eligible for this on the Inland Revenue website.
