National Insurance

[emraa]

I was just wondering. When I start my small business I will be working alone (no employees) with a turnover of around £20,000 for the first year (profit around £15,000 max).
How does this work with National Insurance contributions?

Thanks!

emma

[MailOrderCo]

Hi Emma

Check out
http://www.hmrc.gov.uk/rates/nic.htm an accountant would also be able to advise you how much you need to pay and help you set-up some sort of monthly payroll for you maybe ?

[Eagle]

You have to pay regular Class 2 NICs and then Class 4 NICs with the bi-annual bill.

[James Smith]

Emma,

in terms of your NI you will pay £2.05 per week in class 2 NI which is paid quarterly as Eagle mentions, plus you will pay around 1/3rd of your total profits in tax and national insurance as part of the self assessment tax system.

You won’t need a payroll to be set up as a self employed person.

Hope this clarifies matters,

Regards,