If you are self-employed, you will need to make National Insurance contributions on your profits when you earn above a certain amount. It's important to stay on top of all your tax records to work out how much you need to pay.
You usually pay 2 types of National Insurance. These are:
- Class 2 if your profits are £6,725 or more a year
- Class 4 if your profits are £11,909 or more a year
To work out your profits, you'll need to deduct your expenses from your self-employed income.
You can pay your Class 2 and Class 4 National Insurance through your Self Assessment tax return.
Note: You must tell HM Revenue and Customs (HMRC) when you become self-employed as a sole trader or partnership. Your National Insurance contribution is reflected on your Self-Assessment Summary.