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Home » News & Insights » Paying NI if you have more than one source of self-employment

Paying NI if you have more than one source of self-employment

Posted on 24th December 2021

Any self-employed person who has more than one source of self-employment is required to pay Class 4 National Insurance Contributions (NICs) on their total taxable profits. Class 4 NICs are paid by the self-employed as a percentage of annual taxable profits.

During the current 2021-22 tax year, no Class 4 NICs currently apply on assessable profits of up to £9,568. NICs are payable at 9% on profits between £9,569 and £50,270. Any income above £50,270, known as the Upper Profits Limit, is liable to NICs at 2%.

However, the self-employed may need to work out an adjustment if they have:

  • Profits on which they have paid Class 1 National Insurance contributions;
  • Trade losses (not losses from furnished holiday lettings) that haven’t been deducted when working out Class 4 National Insurance profits;
  • Any interest from a loan used to invest in a partnership or to provide plant and machinery for partnership use, that they haven’t already deducted when working out their profits – not all loans or partnerships can qualify

Note, that from April 2022, there will be a 1.25% increase in all NIC rates for one year to contribute to increases in the NHS and social care budgets. From April 2023, these increases will be incorporated into a new Levy. 

Source: Informanagement

MJB Avanti | 08000 388799

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Filed Under: News Tagged With: National Insurance, Self Employed, Self-Assessment, Tax

Disclaimer:- The information contained herein is given by way of general guidance only and no action should be taken solely on the basis of the information contained herein. The Avanti Group (UK) Ltd will be pleased to provide further guidance on the issues, and how they might affect you. No liability is accepted by the firm for any action taken without seeking appropriate professional advice

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