1 May 2024
Most self-employed people are required to pay Class 4 National Insurance contributions (NICs) if their profits are £12,570 or more a year.
Class 4 NIC rates for the tax year 2024-25 are 6% (2023-24: 9%) for chargeable profits between £12,570 and £50,270 plus 2% on any profits over £50,270.
A number of categories of people are exempt from paying Class 4 NICs, these include:
The Class 4 NIC rate is lower than the corresponding rate for employees who pay National Insurance at 8% on the same income levels. Both the employed and self-employed pay 2% National Insurance contributions on income above the higher rate threshold.
If you're self employed, and whether you're looking for your first accountant or looking to swap accountants, we'd love to here from you. Give one of our expert and welcoming team a call on 01380 723692 / email and they'll be happy to help.