NATIONAL INSURANCE FOR THE SELF-EMPLOYED
With the end of the 2017/18 tax year approaching, we thought you may be wondering about your National Insurance contributions and how they are calculated if you complete a Self-Assessment Tax Return. If you’re self-employed, you will usually pay two types of National Insurance (NI). The first type is Class 2 NI which is payable when your profits are £6,025 or more for the tax year. The second type is Class 4 NI which is payable if your profits are £8,164 or more for the tax year.
What are the rates for 2017/18?
- Class 2 – £2.85 per week
- Class 4 – 9% on profits between £8,164 and £45,000
– 2% on profits over £45,000
How do you pay your NI?
Your NI will be automatically calculated when your accountant completes your Self-Assessment tax return. If your profits are less than £6,025 then you can voluntarily pay Class 2 NI. We recommend that you pay your NI even if you are not required to so that you don’t have any gaps in your qualifying years for state pension.
Are you looking for an accountant to complete your 2017/18 tax return? Your Tax Shop can help! Get in touch with us today on 01457 83774 or 0161 339 5689.