We cover how to calculate your 2020/21 UK Self-Employed National Insurance in Excel. You will pay 2 types of National Insurance: Class 2 if your annual profits are greater than or equal to £6,475 and Class 4 if they are at least £9,501. If you’re in Class 2 then you pay a fixed, annual National Insurance contribution of £158.60. If you’re in Class 2 then you pay 9% on profits up to £50,000 and 2% on profits above that. In this video, we use the VLOOKUP function to first identify which class you are in based on your annual profit. We then perform intermediary calculations to calculate the Class 4 annual payment and finally use the VLOOKUP function to determine your annual National Insurance contribution based on the class that you're in.
DISCLAIMER: Although I have taken great care to check all of the calculations, I am not a qualified accountant and you should not use this video to substitute financial advice. Make sure you talk to your own accountant before you use this calculator to make any financial decisions.
2020-21 UK Self-employed National Insurance rates and bands:
https://www.gov.uk/self-employed-national-insurance-rates
VLOOKUP Function Tutorial:
https://youtu.be/KvS-1o1C--g
Calculate UK Employed National Insurance Using VLOOKUP In Excel:
https://youtu.be/cPnqR8Vbumk
Calculate UK Income Tax Using VLOOKUP In Excel:
https://youtu.be/HL_HR6ZxrSY
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[email protected]Overview: (0:00)
Determine National Insurance Class: (1:08)
Class 4 Payment Intermediary Calculations: (3:36)
Calculate National Insurance Payment: (7:02)