National Insurance Basics for Creatives in the UK

4 days ago

5 min read

If you are a singer, artist, influencer, or performer in the UK and earning money from your creative work, you will need to pay National Insurance (NI). National Insurance contributions (NICs) help fund the state pension, healthcare, and other public services, and if you are self-employed or earning from multiple sources, understanding how NI works is essential.

Many creatives are self-employed, freelancers, or work a mix of employment and self-employment, which can make NI payments confusing. This guide explains what National Insurance is, how much you need to pay, and how to stay compliant with HMRC.

1. What Is National Insurance and Why Do You Have to Pay It?

National Insurance is a tax that funds state benefits and public services, including:

The State Pension
The NHS
Maternity allowance
Certain types of jobseeker’s allowance
Employment and support allowance

If you are working and earning above a certain amount, you must pay National Insurance contributions (NICs), just like Income Tax.

Unlike PAYE employees, self-employed workers must manage their own NI payments through Self-Assessment.

2. Do You Need to Pay National Insurance?

You must pay National Insurance if you are:

Self-employed and earning more than £12,570 per year
Employed and earning more than £242 per week from a job
Earning from both employment and self-employment, meaning you may need to pay both employee and self-employed NI

If your self-employment income is under £12,570, you do not have to pay National Insurance, but making voluntary contributions can help protect your State Pension entitlement.

3. What National Insurance Contributions Do Self-Employed Creatives Pay?

If you are a self-employed singer, musician, artist, influencer, or performer, you will likely pay:

Class 2 National Insurance (Fixed Weekly Rate)

Who pays it? Self-employed people earning over £12,570 per year
How much? £3.45 per week
How is it paid? Through Self-Assessment (paid in a lump sum with your tax bill)

Why does Class 2 NI matter?

Even if your earnings are below £12,570, you may want to pay Class 2 NI voluntarily to keep your State Pension and other benefits protected.

Class 4 National Insurance (Percentage of Profits)

Who pays it? Self-employed people earning over £12,570 per year
How much?
- 9% on profits between £12,570 and £50,270
- 2% on profits over £50,270
How is it paid? Automatically calculated when you file your Self-Assessment tax return

If your income varies, HMRC will calculate Class 4 NI based on your total self-employed profits at the end of each tax year.

4. How Do You Pay National Insurance If You’re Self-Employed?

Self-employed creatives pay NI through Self-Assessment, which means:

Register for Self-Assessment – If you have not already, register with HMRC by 5 October after your first tax year of self-employment.
File a tax return each year – Declare your earnings and allowable expenses.
Pay NI along with your tax bill – Class 2 and Class 4 NI are included in your Self-Assessment tax calculation.
Make Payments on Account (if required) – If your total tax and NI bill is over £1,000, you will need to make advance payments toward next year’s bill.

You can pay your bill online, by direct debit, or through your Government Gateway account.

5. National Insurance If You Are Both Employed and Self-Employed

Many creatives earn income from both PAYE employment and self-employment, for example:

A musician who also teaches part-time at a school
An influencer with a freelance social media consulting job
A performer with a part-time retail or hospitality job

If you are both employed and self-employed:

Your employer deducts Class 1 NI from your salary through PAYE.
You still need to pay Class 2 and Class 4 NI on your self-employed earnings via Self-Assessment.
HMRC calculates total NI owed when you submit your tax return.

In some cases, if you overpay NI due to multiple sources of income, HMRC may issue a refund or adjust payments.

6. What If You Earn Less Than £12,570?

If your self-employed profits are below £12,570, you are not required to pay NI.

However, you might want to:

Pay Class 2 NI voluntarily to protect your State Pension entitlement.
Keep track of your earnings in case they increase later in the year and push you over the threshold.

If you earn below £1,000 per year from self-employment, you may be covered by the trading allowance and may not need to register for Self-Assessment.

7. What About Voluntary National Insurance Contributions?

If you have gaps in your National Insurance record, this could affect your State Pension eligibility.

You need at least 10 years of NI contributions to qualify for any State Pension.
You need 35 years of contributions for the full State Pension.
If you have gaps, you can make voluntary NI contributions to top up missing years.

To check your NI record, log in to your HMRC Government Gateway account and view your contributions history.

8. How Does NI Work If You Work Abroad?

If you travel or work overseas as a creative professional, you may still need to pay UK National Insurance, depending on:

How long you work abroad – Short-term travel does not affect NI, but long-term work may.
Where you are working – Some countries have social security agreements with the UK, affecting NI obligations.
Your residency status – If you become a tax resident elsewhere, different rules may apply.

Check with HMRC if you regularly work overseas to ensure you are making the correct NI payments.

9. What Happens If You Do Not Pay National Insurance?

Failing to pay National Insurance could result in:

A loss of State Pension eligibility – You may not qualify for full benefits later in life.
A penalty or fine from HMRC – Late payments can lead to fines.
Issues with benefits eligibility – Some benefits require recent NI contributions to qualify.

If you cannot afford NI payments, HMRC may allow payment plans to help spread costs.

Final Thoughts: Stay on Top of Your National Insurance

If you are a singer, artist, influencer, or performer, understanding and paying National Insurance is essential for protecting your pension, benefits, and tax compliance.

If you earn over £12,570 from self-employment, you must pay NI.
Class 2 NI is a flat rate (£3.45 per week), and Class 4 NI is based on profits.
If you work both PAYE and self-employed jobs, NI is calculated across both incomes.
Keeping track of NI ensures you remain eligible for the State Pension and benefits.

By staying organised and setting aside money for NI payments, you can avoid financial surprises and ensure long-term security.

If you're ever in need of help with setting up a limited company, sorting out your bookkeeping, accounting and tax submissions or would like some personal financial coaching, drop us a line by clicking on the 'Contact Us' button at the top of the page and we'll be happy to help.