Weekly Class 2 contribution of “2.30pw, unless they claim exception or small earnings (below £4,825). Usually paid monthly by direct debit.
Class 4 NIC at 8% of taxable profits between £5,435 and £40,000. Profits over £40,040 will be charged at 1%. This is assessed and paid with the self-assessment income tax on profits.
Class 3 voluntary NIC may be paid at £8.10 per week by someone who is not in work but who wishes to maintain state pension rights.
Annual limits
Some one 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 at only 1%, and the overall balance of liability will be settled at a later date.
