National insurance - if employed AND self employed
16 July 2010, 01:34 PM
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National insurance - if employed AND self employed
If you're employed
- if you earn above £110 a week (the 'earnings threshold') and up to £844 per week you pay 11 per cent of this amount as 'Class 1' National Insurance contributions
- you also pay one per cent of earnings above £844 a week as Class 1 National Insurance contributions
- you will pay a lower amount as an employee if you are a member of your employer's contracted out pension scheme
- you pay 'Class 2' National Insurance contributions at a flat rate weekly amount of £2.40
- you also pay 'Class 4' National Insurance contributions as a percentage of your taxable profits - you pay eight per cent on annual taxable profits between £5,715 and £43,875 and one per cent on any taxable profit over that amount
16 July 2010, 02:23 PM
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Eventually found this, "People who are both employed and self-employed should make sure that they do not pay both Class 1 and Class 4 contributions on income exceeding the UEL at the full rate. You can apply for a rebate if you do."
Interesting how we forget about NI, contracted out basic rate taxpayers are paying 20% income tax and 8% NI, wherease higher rate taxpayers are paying 40% income tax and 1% NI.
Interesting how we forget about NI, contracted out basic rate taxpayers are paying 20% income tax and 8% NI, wherease higher rate taxpayers are paying 40% income tax and 1% NI.
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