Class 4 National Insurance
Class 4 National Insurance is one of the two types of National Insurance (NI) that you pay if you’re self-employed.
The other type is Class 2.
You start paying Class 4 NI once you earn over £9,501 a year (from all your combined income sources).
Class 4 NI is 9% for self-employment profits between £9,501 and £50,000, and 2% on anything above £50,000.
What to remember about Class 4 National Insurance:
- You pay it yourself through a Self Assessment tax return – as with Income Tax on your self-employment earnings
- It is in addition to Class 2 National Insurance
- You must pay Class 4 NI even if you earn less than the Personal Allowance
- If you’re also working as an employee and your total earnings are over £9,501 (e.g. you work in sales during the day and freelance as a tutor in the evenings), you’ll pay both Class 1, Class 2, and Class 4 NI.
For more information, you can use this employed and self-employed calculator to see how much NI you should pay.
Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.
Have a minute? See how it works