National Insurance Explained for Freelancers

NI contributions fund state benefits including State Pension.

Types

• Class 2: flat weekly rate for self-employed above threshold.
• Class 4: percentage of profits above thresholds.

Paying

• Calculated via Self Assessment.
• Paid with your tax bill in January/July.

Watchouts

• Keep an eye on thresholds; they change.
• Missing years reduce State Pension entitlement.