Class 4 National Insurance contributions

Introduction

If you are self-employed you may be liable for Class 4 National Insurance contributions (NICs), in addition to Class 2 NICs. Unlike Class 2 NICs, Class 4 NICs do not entitle you to state benefits, but they are a legal obligation.

A self-employed married woman or widow who is entitled to pay reduced contributions, and therefore is not liable to Class 2 NICs, still has to pay Class 4 contributions.

Class 4 NICs are the NICs you pay on annual profits above a certain level. They are calculated as part of your annual self-assessment tax return. If you are both self-employed and employed, you may also pay Class 1 NICs. However, if your Class 1 payments exceed a certain level, you may be able to defer payment of your Class 2 and/or Class 4 NICs.

This guide explains how Class 4 NICs are calculated, how and when to pay them, and also the circumstances when exceptions apply.

Subjects covered in this guide

• Introduction
• Calculating Class 4 National Insurance contributions
• Paying Class 4 National Insurance contributions
• Class 4 National Insurance contributions exceptions

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