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 just like other employees.

The company, as your employer, must calculate the relevant primary and secondary contributions on your total earnings and forward these to HM Revenue & Customs (HMRC).

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 an annual cumulative basis. See our guide on Class 1 National Insurance contributions.

You can also download the guide on NICs for company directors from the HMRC website (PDF, 213K) - Opens in a new window.

Use our interactive tool to identify the National Insurance contributions you must pay.

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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