National Insurance Contributions

For employees' NIC, see Employee Taxation page.

Self-employed people pay:

Class 3 voluntary NIC may be paid at 13.55pw by anyone not in work but who wants to maintain state pension rights.

Annual limits

Someone who is both employed and self-employed will pay Class 1, Class 2 and Class 4 NIC. It is possible to apply for deferment of Class 4 so that the Class 1 paid on earnings can be taken into account. Class 4 will then be charged through self-assessment at only 2%, and the overall balance of liability will be settled at a later date.