8th October 2013
National Insurance for the Self Employed, Employees and Employers.
Self Employed people pay 2 types of National Insurance – Class 2 and Class 4.
Class 2 National Insurance is a flat weekly amount (£2.70 for 2013.14) paid monthly or 6 monthly by direct debit.
It contributes towards your entitlement to your basic state pension as well as some other, but not all, benefits.
When you first become self employed it is important to make sure you register to make these contributions either by:
- speaking to HMRC (newly Self Employed Helpline: 0300 200 3505)
- by using the Revenue’s online registration tool or
- by completing form CWF1 which you should be able to find easily on Google.
There are a few exemptions available for Class 2 NI the most common being age exemption and small earnings exemptions. If you think you may not need to pay Class 2 NI then you should speak to your accountant...
Read the full blog here: Basic Guide to National Insurance Contributions