Our quick guide to National Insurance in the UK

What are Class 4 National Insurance Contributions?

For the 2023/24 tax year, Class 4 National Insurance Contributions (NICs) are:

• 9% on profits between £12,570 and £50,270

• 2% on profits above £50,270

For the 2024/25 tax year, the main rate of Class 4 NICs has been reduced to 8% on profits between £12,570 and £50,270, while the 2% rate on profits over £50,270 remains unchanged.

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How much are class 2 NICs?

For the 2023/24 tax year, Class 2 National Insurance Contributions (NICs) are:

• £3.45 per week if your profits are £12,570 or more per year.

• Voluntary contributions if your profits are between £6,725 and £12,570, but you don’t have to pay them automatically.

• Nothing due if your profits are below £6,725, but you can still choose to pay to protect your state pension and benefits.

For the 2024/25 tax year, Class 2 NICs have been abolished for most self-employed people earning above £6,725. However, voluntary contributions are still an option if you want to maintain your National Insurance record.

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