This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Are National Insurance contributions deducted before tax?

wrongsideof40
Posts: 4
Joined: Tue Jan 10, 2017 11:17 pm

Are National Insurance contributions deducted before tax?

Postby wrongsideof40 » Fri Oct 12, 2018 12:39 pm

Complete newbie question, but I can't seem to find the answer...

I'm a sole trader, and have the dubious pleasure of filling in a self-assessment form, soon. I want to pay Class 2 NICs so my question is: For tax purposes, are the contributions deducted before paying tax, or not?
Also, who and how do I inform that I want to pay them?

Thanks - Martin

JRG
Posts: 408
Joined: Wed Feb 03, 2010 4:40 pm

Re: Are National Insurance contributions deducted before tax?

Postby JRG » Fri Oct 12, 2018 3:11 pm

All NICs are payable in addition to income tax. Class 2 NICs are payable at £2.95 per week on profits exceeding £6,205 for this tax year.

wrongsideof40
Posts: 4
Joined: Tue Jan 10, 2017 11:17 pm

Re: Are National Insurance contributions deducted before tax?

Postby wrongsideof40 » Fri Oct 12, 2018 3:30 pm

Thanks for that, JRC. Year 1 profits won't get near 6K but I want to keep my NI payments up for State Pension purposes :-)


Return to “Income Tax”