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.
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
The new tax year begins on 6th April 2024.
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