Budget 2007 Introduction Personal Taxation Employee Taxation Investment Reliefs Capital Gains Tax Trusts National Insurance Contributions Tax Credits Inheritance Tax Business Tax Corporation Tax Value Added Tax Stamp Duty Insurance Premium Tax

National Insurance Contributions For employees' NIC, see Employee Taxation page. Self-employed people pay: * weekly Class 2 contribution of £2.20pw, unless they claim exception or small earnings (below £4,635). Usually paid monthly by direct debit. * Class 4 NIC at 8% of taxable profits between £5,225 and £34,840. Profits over £34,840 will be charged at 1%. This is assessed and paid with the self-assessment income tax on profits. Class 3 voluntary NIC may be paid at £7.80 per week by someone who is not in work but who wishes to maintain state pension rights./TD>   Annual limits Someone who is both employed and self-employed will pay Class 1, Class 2 and Class 4 NIC. It is possible to apply for deferment of Class 4 so that the Class 1 paid on earnings can be taken into account. Class 4 will then be charged at only 1%, and the overall liability will be settled at a later date.