National Insurance Tax

National Insurance is a compulsory payment which exists to provide state assistance and qualify for certain benefits. It is important to understand how National Insurance affects you and whether or not you need to pay it. Businesses have a huge responsibility to be aware of all of these obligations and it is in your interested to be fully informed.

You will pay National Insurance if you are:

  • 16 years of age or older;
  • Employed and earning more than £155 per week; or
  • Self-employed and with an annual profit of £5,965 or more.

Once you have worked out whether you need to pay National Insurance, you need to decipher which class you fall under in order to know how much you must pay.

There are currently 5 different National Insurance classes:

  • Class 1 is for employees earning more than £155 a week;
  • Class 1A or 1B is what employers pay directly on their employee’s expenses or benefits;
  • Class 2 is for self-employed people earning more than £5,965 a year;
  • Class 3 is for those wishing to pay voluntary contributions in order to fill out gaps; and
  • Class 4 is for self-employed people earning more than £8,060 a year.

It is best to seek National Insurance Advice as each of the above classes has a different rate. At Bloomsbury Law, we understand that calculating your National Insurance can be complicated. If you have any queries regarding your National Insurance, please get in contact with one of our specialists. We will diligently listen to your queries and advise you accordingly once we are instructed.

What do I do next?

Contact us online or speak to one of our dedicated specialists on 0207 998 7777 for a free initial consultation. With our vast experience in the field, our bilingual speaking team will work with you to ensure this process runs as smooth as possible. All information you provide us with is treated with the utmost confidentiality.

We will contact you no later than the next working day to arrange a meeting at our offices in London W1 to advise on the agreement.

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