[UK] Self-employed National Insurance contributions by Direct Debit [UK] Self-employed National Insurance contributions by Direct Debit

[UK] Self-employed National Insurance contributions by Direct Debit
12 Aug 2019

In general, there are 2 types of National Insurance that must be paid if the individual is self-employed:

 

  • Class 2 if profits are £6,365 or more a year. This is paid at a flat rate of £3 per week
  • Class 4 if profits are £8,632 or more a year. The National Insurance paid is 9% of profits between £8,632 and £50,000 and 2% on profits above £50,000

 

This is often paid reconciled or paid via Self-Assessment, though there are some occupations that must pay voluntary NI Contributions (see “Special rules for specific jobs” on gov.uk).

 

The self-employed individual can apply to pay via direct debit using form CA5601.

 

However, if the individual lives outside of the UK and pays voluntary NI Contributions there is a form to fill in at the bottom of the NI38 leaflet.

 

The Global Payroll Association is pleased that gov.uk updated their “application to pay self-employed National Insurance contributions by Direct Debit” page on the 16th of July 2019 to add this information about residents living abroad.

In general, there are 2 types of National Insurance that must be paid if the individual is self-employed:

 

  • Class 2 if profits are £6,365 or more a year. This is paid at a flat rate of £3 per week
  • Class 4 if profits are £8,632 or more a year. The National Insurance paid is 9% of profits between £8,632 and £50,000 and 2% on profits above £50,000

 

This is often paid reconciled or paid via Self-Assessment, though there are some occupations that must pay voluntary NI Contributions (see “Special rules for specific jobs” on gov.uk).

 

The self-employed individual can apply to pay via direct debit using form CA5601.

 

However, if the individual lives outside of the UK and pays voluntary NI Contributions there is a form to fill in at the bottom of the NI38 leaflet.

 

The Global Payroll Association is pleased that gov.uk updated their “application to pay self-employed National Insurance contributions by Direct Debit” page on the 16th of July 2019 to add this information about residents living abroad.

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