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

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 16^th 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 16^th of July 2019 to add this information about residents living abroad.