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 by the 19th after the end of the tax month/quarter (or by the 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 and this is currently to remain the same for 2010/2011. 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 calculated on the taxable income of an individual and is paid together with the tax liability on 31 January and 31 July each year.

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