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No NICs

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22 July 2008
Issue: 4168 / Categories: Forum & Feedback
Should a newly self-employed person register for National Insurance even though he is also an employee?

A new client will be commencing self-employment next week. I would 'guesstimate' that his profit this year will be between £5 000 and £10 000.

He is currently employed and his salary to 5 April 2009 will be £44 000 p.a. (From April 2009 he will be receiving a pension of 50% of this rate.)

Does he still have to register and pay Class 2 and Class 4 National Insurance as he is currently having Class 1 NI deducted through his salary?

Readers' advice is welcomed.

Query 17 240 — New Biz

Reply from Magnus

New Biz presents a complicated scenario. In theory the new client will have to pay Class 1 Class 2 and Class 4 National Insurance contributions in 2008-09. The Class 1 contributions will be 11% on weekly earnings between £105.01 and £770 and 1% above £770. This means that 1% will be payable on the...

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