A partnership is a business which is owned and managed by more than one person. The partners are jointly responsible for all aspects of the business and will share the profits. Partners will usually pay national insurance contributions on their share of the profits.
National insurance contributions are compulsory payments made by employees, employers and the self-employed (including partners) towards certain state benefits. The contributions are made at various different rates.
You pay National Insurance if you’re:
You need a National Insurance number before you can start paying National Insurance contributions.
National Insurance contributions are payable by individuals between the ages of 16 and state retirement age.
For partners there are two types:
|Type of Insurance||Amount payable (2018/2019)|
|Class 2||A flat rate of £2.95 per week if your share of profits exceed £6,205 per annum.|
|Class 4||Based on the partners' profits: 9% between £8,424 and £46,350 and 2% over £46,350.|
Use the HMRC tool to help you estimate your partnership National Insurance and tax liabilities.
Income Tax and National Insurance contributions for partners are payable by 31 January following the tax year to which they relate.
If the amount exceeds £1,000 an individual is required to make a payment on account for the next tax year.
Payments on account are due by 31 January and 31 July.
You may wish to consider paying voluntary National Insurance Contributions if there is a gap in your record. This will ensure that you are eligible to a full state pension when you reach state retirement age.
You may get gaps in your record if you don’t pay National Insurance or don’t get National Insurance credits. This could be because you were:
For details on how to check your national insurance record go to https://www.gov.uk/check-national-insurance-record
You can register to pay National Insurance online via the HRMC website.Read more
You unique National Insurance number is used to make sure your National Insurance contributions and tax are recorded against your name only. You can apply for a National Insurance number if you don’t have one or find your National Insurance number if you’ve mislaid it on the GOV.UK website.Read more
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