The classes of tax and national insurance that will apply to your business will depend on the type of business you set up.
As a business you could be liable to pay tax on any profits made. Tax is a huge area with much dependency on personal circumstances and the levels of business activity you are likely to be involved in.
For more details such as information about tax returns, tax allowance and tax codes you can visit the Gov.uk tax help page:
GOV.uk – Tax help (external website)
You can also contact a local business adviser who will be happy to guide you to the right source of correct information:
You can find out more about tax on Gov.uk. HM Revenue & Customs (HMRC) is the government department responsible for the collection of tax:
GOV.uk – HM Revenue and Customs (external website)
National Insurance (NI)
National Insurance (NI) is a system of contributions paid by both employed and self-employed people (trading as sole traders or partnerships) that qualifies them for certain state benefits and pensions such as the State Pension, Maternity Allowance and Incapacity Benefit.
There are 6 types of National Insurance Classes which you can read more about on Gov.uk:
GOV.uk – National Insurance Classes (external website)
Don’t need to pay contributions?
Even if you don’t need to pay contributions, some individuals (whether employed or self-employed) choose to pay voluntary National Insurance Contributions (NIC)s, for example to protect your State Pension if you haven’t otherwise made enough contributions.
Read more about the benefits of making voluntary contributions:
GOV.uk – Voluntary National Insurance contributions (external website)
Employed and self employed
If you’re both employed and self-employed at the same time, your employer will deduct your Class 1 National Insurance from your employed earnings, and you have to pay Class 2 and Class 4 payments for your self-employed work.
How much you pay depends on your combined income from all your jobs. HM Revenue and Customs (HMRC) will let you know how much National Insurance is due after you’ve filed your Self Assessment tax return:
GOV.uk - self-assessment tax returns (external website)