NIC's

jowebber
jowebber Registered Posts: 7 Regular contributor ⭐ ? ⭐
Hello everyone

Can someone clarify for me which NIC's should be paid if an employee continues working for a company full time but also starts up as a sole trader part time.
They will have to pay Class 4 contributions on their profits (sole trader) but do they have to pay monthly Class 2 :001_smile:contributions as well as the Class 1 contributions deducted from their salary by their employer.

Thank you

Comments

  • groundy
    groundy Registered Posts: 495
    Yes

    Unless they qualify for exemption from Class 2 based on profit levels
  • jamesm96
    jamesm96 Registered Posts: 523
    Don't forget that NI is calculated on a 'per income stream' basis; i.e. if the employee earns £146 per week in employment and £5,315 for the year on the self employment, then there's no need to pay any NI at all (paperwork permitting), even though total income for the year is nearly £13k.

    Sorry if you already knew that I didn't mean to be hugely patronising, just didn't want to overlook it.
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