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, which is being scrapped from the beginning of the 2024/2025 tax year. You’ll still be able to pay Class 2 voluntarily from April 2024 onwards, if you’re under the threshold and want to qualify for benefits or fill gaps in your NI record.

How much is Class 4?

You start paying Class 4 NI at a rate of 9% (decreasing to 8% from 6 April 2024) once you earn over £12,570 a year from all your combined income sources. You pay it yourself through a Self Assessment tax return, as you do with Income Tax on your self-employment earnings

It’s paid in addition to Class 2 National Insurance, not as an alternative

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 £12,570, you’ll pay both Class 1, Class 2 (scrapped from 6 April 2024), and Class 4 NI