Fred, a self-employed blacksmith, has trading profits of £49,000 in 2012/13.
National insurance contributions for 2012/13 amount to:
The correct answer is: £3,407.
Class 2
(£2.65 x 52)
Class 4
(£42,475 - £7,605) x 9%
(£49,000 - 42,475) x 2%
Class 2 is paid at a flat weekly rate, Class 4 is paid on the band of profits between £7,605 and £42,475 at a rate of 9% and 2% on profits above £42,475.
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