What is Class 4 National Insurance ?
This is our Class 4 National Insurance Guide
If you are Self-Employed you normally have to pay Class 4 National Insurance Contributions if your profits are over a certain amount.
We will help you with your Class 4 NI as part of the Self Assessment process.
Limited Companies do not pay Class 4 NI.
Please visit our webpage to help you decide whether to trade as a Sole Trader or Limited Company.
Class 4 NI Rates – How much is payable ?
The amount of Class 4 NI contributions you have to pay for any tax year is based on your profits for that year.
For the tax year 2017/18 (6/4/17 to 5/4/18):
• 9% on business profit between £8,164 and £45,000
• 2% on business profit over £45,000.
For the tax year 2018/19 (6/4/18 to 5/4/19):
• 9% on business profit between £8,424 and £46,350
• 2% on business profit over £46,350.
How is Class 4 NI Paid ?
Class 4 NI can also be deferred (reduced) if you are also in employment.
Class 4 NI Deferment
If you have a full time job as well as being Self Employed, it is possible that Class 4 NI contributions can be deferred. In these circumstances it is possible that you may only need to pay 2% instead of the 9% in the bands above.
Payments On Account
Class 4 NI is also used for the Payments On Account calculation.