National Insurance Rates For Self Employed. Class 2 and class 4 nics are charged at different rates. Rates for class two social security contributions are based on the annual net profit or income for the year preceding the contribution payment year.
Class 4 national insurance contributions are only charged if your profits are above £9,500 a year.the rate is nine per cent of profits between £9,501. Then zus calculates the rates by taking 60% of the monthly average. Class 2 if your profits are £6,475 or more a year
Had the class 2 been abolished, the self employed would have had to move on to class 3 contributions instead which would have increased the weekly national insurance contributions of £2.95 (for 2018/19) to a.
Class 2 nic rate applies for any earnings over £6,205 per annum and is payable for each week. Here are the 2018/2019 class 1 national insurance rates: Class 4 applies to profits for the whole year and has it’s own brackets: National insurance breakdown you pay no ni contributions on the first £9,500 that you make.