In our previous article we looked at how to register as self employed. Here we look at national insurance for self employed people. In particular, the Class 2 national insurance contribution small earnings exception.
When you are self employed you have to pay Class 2 and Class 4 National Insurance contributions. Class 2 are paid weekly and Class 4 are paid with your tax.
If you earn less than £5725 (2013/14) per year from your self employment, you can claim an exception from paying Class 2 national insurance contributions for the year. This can be done online here: http://www.hmrc.gov.uk/working/intro/class2.htm