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Fisher is self-employed and runs her own business. Fisher’s tax adjusted trading profits for the year...

  1. Fisher is self-employed and runs her own business. Fisher’s tax adjusted trading profits for the year 2016/17 were £22,785. Which of the following combinations of National Insurance contributions must Fisher pay in the tax year 2016/17?

  1. Class 1A, Class 1 secondary
  2. Class 1 secondary, Class 4
  3. Class 2, Class 4
  4. Class 2, Class 1 primary
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Answer #1

There are 2 types of National Insurance for self employed people depending on their profits.

For tax year 2016-17, a self employed person is required to pay class 2 national insurance is his profit is more than £5,965 and he is also required to pay class 4 national insurance if his profit is more than £8,060.

Here, we can see that Fisher's adjusted trading profit for the year 2016-17 were £22,785 and hence he is required to pay both class 2 and class 4 national insurance. Hence , the correct answer is C. Class 2, Class 4.

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