National Insurance is paid by most people to entitle them to their state pension and other benefits. And after the 2017 Autumn Budget, the levels of income at which you pay National Insurance contributions is changing.
Currently, employees pay 12% National Insurance on income between £8,164 and £45,000. They pay 2% on anything above.
For the self-employed it works slightly differently. They pay 9% National Insurance on income between £8,164 and £45,000, and 2% thereafter.
They also pay a flat rate amount of £2.85 per weel a year on income above £6,250, although this is voluntary. These are called ‘Class 2’ contributions.
These threshold are rising – the lower threshold goes up to £8,424 and the higher threshold rises to £46,350. Class 2 contributions are rising to £2.95 per week.
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Use our National Insurance calculator for the 2018-19 tax year
Use our income tax calculator to find out how much tax you’ll pay in the 2018-19 tax year, starting on 6 April 2018. This calculator assumes the self-employed will pay Class 2 contributions.
Read all our Budget coverage and see how the changes will affect your finances.