Making National Insurance payments

Class 1 NIC (employed)

It is the responsibility of the employer to calculate and deduct from the employees gross wage and pay to HMRC together with tax and employers class 1A NIC on the 19th after the end of the tax month/quarter (22nd if paid electronically).

Class 2 NIC (self employed)

Self employed individuals pay Class 2 National Insurance Contributions (NIC). This is a flat rate currently for 2009/10 £2.40 per week. This is usually paid by direct debit, and starts on commencement of trade. There is a small earnings exemption of £5,075 per annum.

Class 4 NIC (self employed/Partnership)

This is an additional national insurance contribution which is calculated on the taxable income of an individual and is paid together with the tax liability on 31 January and 31 July each year.

Disclaimer

The content and advice is for information only. Last updated 26.07.2009.

For up to date information and advice, based on your specific circumstances, please contact us.

We cannot be held responsible for actions taken with reference to the content contained on this website.