Class 4 NIC are based on the level of your self-employed profits. You are only liable to pay Class 4 NIC if your profits are over a certain level, the lower profits limit. His Class 4 NIC liability is calculated as follows:. Her Class 4 NIC liability is calculated as follows:.
If you make payments on account then your Class 4 NIC will be included when calculating the instalments, if you do not pay your tax through payments on account then the Class 4 NIC will be due on 31 January following the end of the tax year to which it relates.
Class 2 NIC is paid as part of the payment due on 31 January following the end of tax year, regardless of whether or not you make payments on account. We explain why below. If you prefer, you can make regular payments of Class 2 NIC throughout the tax year, rather than a lump sum payment.
You should contact HMRC to arrange this. If you are employed and self-employed and you pay the maximum amount of employees NIC Class 1 then you may not need to pay Class 2. It is due by the 31 January following the end of the tax year as part of the Self Assessment process. It is not included in any payments on account. You can read about this in our news article. It is paid as part of the Self Assessment process, so payment may be due as part of any payments on account or by the 31 January following the end of the tax year if you are not within the scope of payments on account.
It is paid as part of your Self Assessment tax. This relates to Class 2 NIC. You will however have the option to pay Class 2 NIC voluntarily at the end of the tax year. Married women could apply for a reduced rate of contributions before A subsequent annulment of marriage, or divorce, immediately stops entitlement to paying reduced contributions. If you are not sure whether or not you are entitled to pay at the reduced rate you can enquire on form CF9 married women or form CF9A widows to find out.
The same forms are used to give up your right to pay reduced rate contributions. But if you pay the maximum amount of Class 1 NIC on your employment income, you may not need to pay any more contributions.
Your Class 2 NIC liability is automatically calculated as part of the Self Assessment process, provided that you either file online or your paper tax return is submitted by the due date normally 31 October, following the end of the tax year and if you are due to pay any Class 2 NIC it is included with the tax you are due to pay on 31 January following the end of the tax year to which it relates. Your Class 4 NIC liability will be automatically calculated, provided that you either file online or your paper tax return is submitted by the due date normally 31 October, following the end of the tax year , as part of the Self Assessment process.
You can find details of the benefits to which Class 2 gives entitlement in the tax basics section. Class 4 NIC do not count towards any state benefits.
You might want to protect your eligibility to certain state benefits. This is because eligibility for some state benefits relies on you having paid a certain amount of Class 2 NIC within a defined time. The two benefits most likely to be affected are maternity allowance and in some specific circumstances, contributions based employment and support allowance ESA.
The state pension also depends on you having paid or been credited with sufficient NIC over your working life. You can read more about eligibility for the state pension in our pensioners section. The two benefits most likely to be affected are maternity allowance and in some specific circumstances, contributions-based employment and support allowance ESA. Entitlement to maternity allowance is based on NIC paid in the 66 weeks before the baby is due. This period is known as the test period. The standard rate for which you must be self-employed for 26 weeks in that test period and have paid Class 2 NIC for 13 of them; and.
As an example, if your baby was due in August , then you would have had to pay sufficient contributions in the 66 weeks leading up to that date — broadly from May to August Although the Class 2 contributions are not due until 31 January , you can choose to pay them early. Paying early contributions may mean you will have paid enough to receive standard rate of maternity allowance. If you have not paid your contributions early or have not paid enough, when you make the claim for maternity allowance, you will be given the opportunity to make a lump sum payment of Class 2 contributions to enable you to claim the standard rate maternity allowance if appropriate — HMRC will work out how many weeks contributions need to be paid and then issue a bill for this amount.
ESA is paid to people who are unable to work due to illness. Normally, in order to be paid ESA in the current benefit year which runs from January to December you must have paid the following National Insurance contributions:. In addition, you must have paid or been credited with 50 weekly contributions for both of those tax years.
In reality this issue is only likely to affect you if you claim ESA between the first Sunday in January and 31 January in a year because only at that time are you unlikely to have paid the contributions necessary. You should note that there are some exceptions to the above contributions conditions for ESA but the information here covers most situations.
Skip to main content. What National Insurance do I pay if I am self-employed? If you have a comment or query about benefits, you will need to contact the government department or agency which handles that benefit. Contacts for common benefits are listed below. Call Email dcs. Call Email customerservice. Comments or queries about the Blue Badge scheme can be emailed to bluebadges infrastructure-ni. For queries or advice about claiming compensation due to a road problem, contact DFI Roads claim unit.
For queries about your identity check, email nida nidirect. For queries or advice about criminal record checks, email ani accessni. For queries or advice about employment rights, contact the Labour Relations Agency. For queries or advice about passports, contact HM Passport Office.
For queries or advice about pensions, contact the Northern Ireland Pension Centre. If you wish to report a problem with a road or street you can do so online in this section. If you wish to check on a problem or fault you have already reported, contact DfI Roads.
Find out more about the state pension in our expert guide. Financial Services Limited. Financial Services Limited is a wholly-owned subsidiary of Which?
Limited and part of the Which? Money Compare is a trading name of Which? Money Compare content is hosted by Which? Limited on behalf of Which? Tax calculators. National Insurance calculator Income tax calculator Council tax calculator Pension lump sum withdrawal tax calculator Dividend tax calculator Child benefit calculator Inheritance tax calculator All 7 calculators.
In this article. Do I pay National Insurance? National Insurance rates and National Insurance rates National Insurance calculator and Work out your tax bill. National Insurance calculator Income tax calculator Council tax calculator. All 7 calculators.
Do your tax return online with Which? Use our jargon-free calculator to complete and securely submit your tax return direct to HMRC. More on National Insurance. National Insurance contributions. What is National Insurance?
0コメント