Do I still pay Class 2 NIC?

Yes, Class 2 NICs remain payable at GBP 3.65 per week (GBP 189.80 per year) to maintain your state pension entitlement.

What tax and NI does a sole trader pay?

Income tax at 20/40/45 on profits after the GBP 12,570 personal allowance, plus Class 4 NI at 6% between GBP 12,570 and GBP 50,270 and 2% above. Cite: ITTOIA 2005 Part 2; SSCBA 1992 s.15.

What are payments on account?

If the balancing payment exceeds GBP 1,000 and less than 80% of the tax was collected at source, two payments on account of 50% each fall due on 31 January and 31 July. Cite: TMA 1970 s.59A.

UK Self-Employed Tax Calculator

Calculate tax and NICs for self-employment

Self-employed individuals pay income tax on their profits plus two types of National Insurance: Class 2 (a flat weekly rate of GBP 3.65) and Class 4 (6% on profits between GBP 12,570 and GBP 50,270, then 2% above).

Frequently Asked Questions

Do I still pay Class 2 NIC?+
What tax and NI does a sole trader pay?+
What are payments on account?+