The principle is simple – everyone is liable to pay National Insurance on their income, unless they are below 16, or over retirement age.
- Sole Traders are liable for Class 2 and Class 4 contributions.
- Partners in a partnership are liable for Class 2 and Class 4 contributions.
- Employees pay Class 1 Contributions.
- Employers pay Class 1 and Class 1A Contributions.
To make sure the set-up of your business is best for you, you have to think about National Insurance contributions, as well as tax.
When making a decision about how much to pay yourself from a limited company, keeping your National Insurance contributions up to date is a key part of setting the amount.
If you want to know more or talk about which options suit you best, call us and we will talk it through with you.
If you want to make sure you don’t pay too much National Insurance, or save “NI” wherever possible, call Astons Accountants who are always happy to help with National Insurance issues.