Class 4 National Insurance Contributions

Self-employed individuals are usually required to pay Class 4 National Insurance contributions (NICs) if their annual profits exceed £12,570. For the 2024-25 tax year, Class 4 NIC rates are set at 6% (down from 9% in 2023-24) on profits between £12,570 and £50,270, with an additional 2% charged on profits above £50,270.

Certain groups are exempt from paying Class 4 NICs, including:

  • Individuals under 16 at the start of the tax year.
  • Individuals over State Pension age at the start of the tax year. If someone reaches State Pension age during the tax year, they remain liable for Class 4 NICs for the entire tax year.
  • Trustees and guardians of incapacitated individuals are exempt from paying Class 4 NICs on that income.

The Class 4 NIC rate is lower than the corresponding rate for employees, who pay 8% on the same income levels. Both employees and the self-employed contribute 2% on income above the higher rate threshold.

The majority of individuals pay Class 4 National Insurance via self-assessment.

Source: HM Revenue & Customs | 14-10-2024

Class 4 National Insurance Support from Specialist Tax Accountants

Understanding Class 4 National Insurance Contributions is an important part of managing your tax position if you are self-employed, particularly with rate changes and exemptions applying in different circumstances. Working with experienced tax accountants in London can help ensure Class 4 NICs are calculated correctly and reported accurately through Self-Assessment. At CIGMA Accounting, we provide specialist tax support for Retailers, Construction Companies, Recruitment Companies, and Healthcare Professionals, helping clients understand their National Insurance liabilities and plan their tax payments efficiently.

Local London Accountants for National Insurance and Tax Planning

Our local accountants in London support clients through our offices in Farringdon and Fulham Broadway, as well as nearby areas including Angel, Hatton Garden, Walham Green, and Sands End. Clients are welcome to visit our offices across London to discuss National Insurance contributions, Self-Assessment calculations, and wider personal tax planning.

Class 4 National Insurance – HMRC Guidance and Expert Help

For official guidance on Class 4 National Insurance Contributions, thresholds, and rates, you can refer to HMRC’s guidance on GOV.UK.

If you are looking for reliable accountants near you to help with National Insurance and Self-Assessment compliance, our team can provide clear, practical advice tailored to your circumstances.

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CIGMA Accounting
CIGMA Accounting Ltd is a forward-thinking accounting and tax firm based in London, dedicated to delivering high-quality compliance, tax planning, and business advisory services to entrepreneurs, landlords, and growing SMEs. With offices in Wimbledon and Farringdon, we combine local expertise with a tech-driven approach to simplify accounting. Our services include corporation tax filing, VAT compliance, HMRC investigation support, R&D tax credit claims, capital allowances optimisation, and bookkeeping automation. What sets CIGMA apart is our ability to blend traditional accounting rigour with AI-powered systems that reduce errors, save time, and provide real-time financial insights. Our team ensures that every client - from startups to high-net-worth individuals - receives a bespoke solution aligned with their growth goals. Whether you need strategic tax planning, help with HMRC disclosures, or a full outsourced finance function, CIGMA Accounting delivers clarity, compliance, and confidence.
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