National Insurance: introduction: How much you pay – GOV.UK

How much can i earn before paying national insurance

The amount of national insurance you pay depends on your employment status and how much you earn.

if employed

you pay class 1 national insurance quotes. the rates for most people for tax year 2022 to 2023 are:

You will pay less if:

  • you are a married or widowed woman with a valid ‘election certificate’
  • you are deferring national insurance because you have more than one job

Employers pay a different national insurance rate based on their employees’ category letters.

how to pay

You pay for national insurance with your taxes. your employer will take it from your salary before they pay you. your payroll will show your contributions.

If you are a director of a limited company, you can also be your own employee and pay class 1 national insurance through your payees.

if you are self-employed

You pay class 2 and class 4 national insurance, depending on your earnings. most people pay for both through self-assessment.

You may be able to pay voluntary contributions to avoid gaps in your national insurance record if:

  • have earnings of less than £6,725 a year from your self-employment
  • have a specific job (such as an examiner or business owner on property or land) and do not pay class 2 national insurance through self-assessment

If you have gaps and do not pay voluntary contributions, this may affect the benefits you can get, such as the state pension.

if you have a specific job and you do not pay class 2 national insurance through the self-assessment, you should contact hm revenue and customs (hmrc) to arrange a voluntary payment.

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if you work for someone else and on your own

can be an employee but also self-employed. in this case, your employer will deduct your class 1 national insurance from your salary, and you may have to pay class 2 and 4 national insurance for your self-employment.

How much you pay depends on your combined salary and your self-employment. hmrc will let you know how much national insurance you have to pay after you’ve filed your self-assessment tax return.

directors, owners and fishermen apart

There are different national insurance rules if you are:

  • director of a limited company
  • owner who manages a real estate business
  • share fisherman, for example, works on a British fishing boat but does not have a contract of service

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