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Commentary

25.2 National insurance contributions

BUSINESSES vol 4(2) start-up, sale and purchase
| Commentary

25.2 National insurance contributions

| Commentary

25.2 National insurance contributions

National insurance contributions (NICs) are payable by reference to the total revenue profits of the business, not merely by reference to the sums extracted by the proprietors. Having said that, NICs for sole traders and partners are payable at a lower rate than for employees1. For the tax year 2011/12 Class 2 contributions are levied at £2.50 per week2 and Class 4 contributions at 8% on annual profits between £7,225 and £42,475, plus 2% on profits over £42,4753.

Class 2 contributions are usually payable quarterly, within 28 days of the date

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