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Business Tips

National Insurance

Paying National Insurance Contributions (NICs) build up your entitlement to state benefits and state pensions. The total amount of NICs contributed depends on your average weekly earnings and there are a number of different percentages of NICs for each type of employee.

NICs are payable by those that are between 16 and 65 and who are either employed or self-employed. These are payable either on a voluntary or involuntary basis.


Employees pay Class 1 Primary NICs at 12% between £149 and £797 per week and additional 2% on any salary above £797.

Your employer will ‘top up’ your contributions by paying Class 1 Secondary NICs on your behalf.

Being self-employed means that you will have to pay Class 2 NICs at a flat rate of £2.70 per week for the total duration of being self-employed. In addition to this, you will have to pay Class 4 NICs on profits between £7,755 and £41,450 at 9%. Profits made in excess of this will require Class 4 NICs of 2%.

If you wish to find out more about NICs please contact the Wisteria Tax team.