NI for the self-employed
Lesson 8 of 12 in our free Side Hustles & Self-employment guide: a 5-minute money game with the key points below.
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Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Side Hustles & Self-employment is free for everyone.
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Questions you'll answer
Jas's only income is £20,000 profit from her business. Class 4 NI at 6% on profits over £12,570 — how much?
Mo's side hustle profit is £3,000 and he has no other job. Which is true?
Quick facts
- Fact: “Class 4 NI is worked out on profits, not total sales.” — Costs come off first. Another reason to keep good records.
- Fact: “Self-employed NI is collected through your Self Assessment return.” — It's calculated and paid along with your income tax.
- Myth: “Above £50,270 profit, Class 4 NI stops completely.” — It drops to 2% — it doesn't stop.