If you are self employed then you will generally be expected to pay Class 2 National Insurance. It is a fixed amount, based on a fixed weekly rate and should be paid as part of Self Assessment.
How Much is Class 2 National Insurance?
For 2017/2018 Class 2 National Insurance is £2.85 per week, if your self employed profits are more than £6,025.
Why Do You Pay Class 2 National Insurance?
Class 2 National Insurance entitles you to benefits such as the State Pension, when you reach retirement.
How Do you Pay Class 2 National Insurance?
If you are self employed, need to submit a Self Assessment Tax Return by 31 January each year which details your trading income for the previous tax year, as well as how much income tax your need to pay. You need to include the amount of Class 2 National Insurance you need to pay on this return too.
Who Doesn’t Need to Pay Class 2 National Insurance?
Most people need to pay Class 2 National Insurance, assuming their profits are more than £6,025. However there are some self employed individuals you don’t need to pay Class 2 National Insurance, although they can opt to do so voluntarily:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who don’t receive a salary or stipend
- people who make investments for themselves or others – but not as a business and without getting a fee or commission
Is There Anything Else I May Need to Pay?
Yes, you may need to pay Class 4 National Insurance.
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