Do I pay national insurance now I’m self-employed?

20 March 2019

Q

I have 44 years of fully paid-up national insurance contributions (NICs). I became self-employed in September 2018. Do I still need to pay national insurance? I’m due to get the state pension in February 2022 but will probably retire in 12 to 18 months’ time.

From
DM/Dovercourt

A

Like most employed people, you are required to pay NICs if you are under state pension age. There are two types of national insurance if you are self-employed – class two and class four. Class 2 is payable at £2.95 a week if your profits are £6,205 or more a year. Class 4 is paid if your profits are over £8,424, in that case you pay 9% of your profits between £8,424 and £46,350 and 2% on profits over £46,350.