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For employees' NIC, see Employee Taxation.
Self-employed people pay:
- weekly Class 2 contribution of £2.80, unless they claim exception for small earnings (below £5,965).Usually
paid monthly or six-monthly by direct debit.
- Class 4 NIC at 9% of taxable profits between £8,060 and £42,385. Profits over £42,385 will be charged
at 2%.
Anyone not in work who wants to maintain state pension rights may pay Class 3 voluntary NIC at £14.10 pw.
From 12 October 2015 to 5 April 2017 those who reach state retirement age before 6 April 2016 can top-up their state pension entitlement by paying voluntary amounts of Class 3A NIC.
Annual limits
Someone who is both employed and self employed may pay Class 1, Class 2 and Class 4 NIC. However, for 2015/16 and later years, both Class 2 and Class 4 NIC are collected through self-assessment. If the taxpayer has paid more than the annual limit of NIC for the year, Class 4 NIC will be charged at 2% rather than 9% for the year.
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