You usually pay 2 types of National Insurance if you’re self-employed:
- Class 2 if your profits are over £5,885 a year - apply for a small earnings exception if they’re less
- Class 4 if your profits are over £7,956 a year
You work out your profits by deducting your expenses from your self-employed income.
How much you pay
|Class||Rate for tax year 2014 to 2015|
|Class 2||£2.75 a week|
|Class 4||9% on profits between £7,956 and £41,865
2% on profits over £41,865
How to register
If you haven’t done a Self Assessment tax return before, register your business with HMRC - you’ll register for Class 2 National Insurance at the same time.
If you’ve done a tax return before, either:
You don’t need to register for Class 4 National Insurance.
Register to pay Class 2 National Insurance as soon as you start working for yourself. You may have to pay a penalty if you don’t tell HM Revenue and Customs (HMRC) you’re self-employed.
How to pay
Pay your Class 2 National Insurance after HMRC sends you a payment request in April.
Pay Class 4 National Insurance through your Self Assessment tax return.
From 6 April 2015, you won’t need to register for Class 2 or Class 4 National Insurance - your payments will be added to your bill after you’ve filed your Self Assessment tax return.