From 6th April 2020, the threshold for national insurance is increasing.
The new threshold will be £9,500 and will apply to both the self-employed as well as employees.
For the self-employed, you pay class 4 national insurance contributions at 9% above the threshold on up to £50,000 a year. (In addition to flat rate class 2 contributions every week.)
For employees, you pay class 1 national insurance contributions at 12% above the threshold on up to £50,000 a year.
Both the self-employed and employees also pay 2% national insurance on profits or income respectively above £50,000 a year.
These increases in the threshold are expected to save the self-employed £78 a year, and employees £104 a year.
