I just finished my tax return online by self. I am self-employed for years. Why i have to pay both Class 4 NICs and Class 2 NICs. Before I just had to pay Class 2 NICs.
How can i find out if it is work or not what the final result shows? I cannot change nothing online, it was sent and finished online.
As a self employed person you will pay the following National Insurance contributions for the tax year 2016 / 2017:
If your profits from your self employed business exceed more than £5,965 per year you will pay Class 2 National Insurance at a rate of £2.80 per week. This will be collected via your self assessment tax return.
Note – Class 2 is under review by HMRC and may soon be abolished. As and when things change this will be updated.
Class 4 National Insurance is paid if your self employed profits exceed £ 8,060 per year.
The amount due is 9% on profits between £8,060 and £43,000 and then 2% on profits over £43,000 (2017 / 2018).
Class 4 contributions are paid along with your income tax using the Self Assessment tax return.
The equivalent rates for the current tax year 2017 / 2018 can be found here:
Advice given is for illustration purposes only and should not be relied upon for your tax planning or tax affairs. We recommend that you seek the advice of a suitably qualified accountant before making any tax planning decisions.