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â¢ Insured Earnings is the earnings as. described in your policy and used to. calculate your employeeâs benefits. â¢ It can vary depending on the definition. you choose for each eligibility group. â¢ Changes to insured earnings become. effective at the Insured Earnings.
Additionally, you pay Class 4 National Insurance on your self-employed earnings at a rate of 9% on any income between Â£7,956 and Â£41,865 in a year, and at 2% on any income over Â£41,865. If your combined income goes over Â£40,000 in the tax year, the amount of Class 4 NI payable starts to be restricted (more details).