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 2023/24 (6/4/23 to 5/4/24):
• 9% on business profit between £12,570 and £50,270
• 2% on business profit over £50,270.
For the tax year 2024/25 (6/4/24 to 5/4/25):
• 6% on business profit between £12,570 and £50,270
• 2% on business profit over £50,270.
This is in addition to Income Tax and Class 2 NI, and any Student Loan repayments.
How is Class 4 NI Paid ?
Class 4 NI contributions are calculated as part of Self Assessment tax return and are paid at the same time as Income Tax.
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.
Government and HMRC Webpages
HMRC: Class 4 National Insurance contributions
Gov.UK: National Insurance Overview
