Class 4 National Insurance: how much do you need to pay?

Wondering how much Class 4 National Insurance you need to pay? Let’s see if we can help you out there..

What is National Insurance?

Let’s give you a quick rundown of what National Insurance is so you feel a bit better when it comes to paying it. 

You’ll probably be pleased to know that National Insurance goes towards a range of benefits such as:

• The national health service (NHS)
• Pensions
• Unemployment benefits

National Insurance Contributions may be a bit of a pain now, but they do determine how much state pension you’re entitled to when you retire, so it’s worth keeping an eye on your record. 

Although National Insurance is mandatory, you can make voluntary contributions to ensure you secure the full state pension. 

If you ever wondered what the big fuss about having a national insurance number is – well, your NI contributions are recorded against your national insurance number. 

Now this is where it gets a bit techy so listen up! 🔊

National Insurance is slightly different for self-employed and employed people. 

There are 4 different classes:

• Class 1
• Class 2
• Class 3
• Class… (you guessed it).. 4!

You’ll need to pay Class 4 National Insurance contributions (Class 4 NICs for short) if you’re self-employed and earning over £11,909 a year (in 2022/23). This threshold will go up to £12,570 in April 2023. There’s simply no way around it! 🙅

Most people pay it through their Self Assessment tax return bill (it probably is the easiest way to pay). If you’re unsure how to do this, we’ve covered it step by step in this guide.

How much do I need to pay?

In the 2022/23 tax year, your Class 4 National Insurance contributions are:

• 9% per week on profits over £11,909 from November 2023 (and over £12,570 from April 2023)
• 2% on profits over £50,270

This is on top of your Class 2 National Insurance contributions (which is about £3.15 a week).

National Insurance calculator – give it a go!

So, how do I pay National Insurance?

Many people don’t know there are actually multiple ways you can pay – have a look at the list below 👇

• Online or telephone banking (same day)
• CHAPS (same day)
• At your bank or building society (same day)
• BACS (takes about 3 working days)
• By cheque through the post to HM Revenue and Customs (also 3 working days)
• Through a Direct Debit (if you have not set one up before, it can take about 21 days)

Are there any other ways?

Of course – TaxScouts! Our accredited accounts can file your self assessment tax return in just 48 hours. National insurance contributions and all! 
Wait there’s more… this will cost you just £149, all in! Find out more about our service here.