National Insurance: the basics

I'm both an employer and an employee

As a director of your own limited company you are liable for Class 1 National Insurance contributions (NICs) on your earnings like any other employee.

Therefore, in your capacity as your own employer, you must calculate the Class 1 primary contributions due, deduct them from your salary and forward payment to HM Revenue & Customs.

The company, as your employers, must also calculate the relevant secondary contributions and forward these to HM Revenue & Customs.

If you have director status in your company, you should be aware that your Class 1 contributions are calculated differently to those of employees, as directors' NICs are calculated on a cumulative basis. See our guide on Class 1 National Insurance contributions.

You can also download the guide on National Insurance contributions for company directors from the HM Revenue & Customs website (PDF) .

Subjects covered in this guide

• Introduction
• National Insurance contribution types
• National Insurance contributions for employers and employees
• National Insurance contributions for the self-employed
• I'm both an employer and an employee

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