National Insurance is a tax that we all have to pay in the UK to be entitled to claim certain state provided benefits. You have to pay it whether you’re employed or self-employed – although the type (or class) that you pay is determined by your employment status.
Here are some of the benefits that you’re entitled to as a result of paying National Insurance:
Well, of course, you could just use our National Insurance calculator above to see exactly what you’ll end up paying, but if you’d like a breakdown of the rates, check out the table below.
Well, let’s say 2022 was a weird year. After four chancellors, three prime ministers and numerous mini and maxi financial budgets, the National Insurance rate changed quite a lot of times. As a result, your calculation isn’t as straightforward as it is in more stable tax years. Take a look at our blog on the 2022 budget to see what happened.
Yes – class 2 if you’re self-employed and earn more than £6,725. From April 2023, you won’t pay Class 1 or 4 National Insurance if you earn less than the Personal Allowance.
When you earn less than £12,570 in a tax year, you’re exempt from paying Income Tax. The first £12,570 of your income is known as the Personal Allowance. You don’t pay Income Tax on it unless you earn over £100,000, at which point you start to lose your eligibility to it.
The table above shows you how much National Insurance you’ll owe based on your earnings.
Calculating your tax is one thing, but there’s nothing like speaking to a real, human expert, right? That’s why we offer a pay-as-you-go tax accountant service. Get your tax return filed, a one-off tax advice consultation plus online support from an accredited accountant. Just £229, all in.
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