05: Self-employed people
Self-employed individuals and members of partnerships pay two types of NICs.- Class 2 NICs are flat-rate contributions of £2.30 a week (£119.60 a year) where the self-employed earnings are over £4,825 a year.
- Class 4 NICs are based on taxable business profits for the year. For 2008/09, they are chargeable at a main rate of 8% on profits between £5,435 and £40,040 and 1% on profits above this. Class 4 NICs provide no entitlement to benefits.
