We provide standalone personal services for businesses and individuals who need assistance with their tax and investment affairs.
FWD can help you with every aspect of National Insurance Contribution (NIC) and help you get on with the things that matter. Everyone between the age of 16 and state pension age who’s working pays NIC to HMRC. As a self-employed person, you pay less National Insurance than if you were an employee.
What are NICs?
If you’re employed you stop paying NICs as soon as you reach State Pension age. If you are self-employed, you stop paying Class 2 contributions as soon as you reach State Pension age and Class 4 contributions from the start of the tax year after the one in which you reach State Pension age. State Pension age is 65 for men born before 6 April 1959 and 60 for women born before 6 April 1950. But it will gradually increase to 65 for women between 2010 and 2020.
If you are Self-Employed
If you are self-employed you pay Class 2 and Class 4 NICs. The rates are:
- Class 2 contributions are paid at a flat rate of £2.40 a week
- Class 4 contributions are paid as a percentage of your annual taxable profits – 8% on profits between £5,715 and £43,875, and a further 1% on profits over that amount
If your profits are expected to be less than £5,075 you may not have to pay Class 2 NIC. You pay Class 2 NICs either monthly by Direct Debit or by quarterly bill. You pay Class 4 NICs when you pay your Income Tax.
Register with HM Revenue & Customs (HMRC)
It’s important to let HMRC know that you are self-employed as soon as possible, even if you already fill in a tax return each year. If you don’t tell HMRC as soon as you begin self-employment you may have to pay an initial penalty.
Please contact FWD if you would like any support with NIC.