What are class 4 national insurance contributions?
Answered 11 March 2026
Here is a comprehensive explanation of Class 4 National Insurance Contributions (NICs):
What the law says
Class 4 NICs are governed by section 15 of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992). The lower and upper profits limits are set annually by statutory instrument amending that section.
Class 4 NICs are charged at two rates on self-employed profits:
- A main (primary) rate on profits between the Lower Profits Limit (LPL) and the Upper Profits Limit (UPL)
- An additional rate on profits above the UPL
HMRC guidance / practice
What Class 4 NICs are: Class 4 NICs are payable by the self-employed, based on a percentage of profits between a lower and upper limit, and are normally payable in addition to Class 2 contributions. They are collected alongside income tax through Self Assessment.
No benefit entitlement: Unlike Class 2 contributions, Class 4 contributions do not count at all for benefit purposes (e.g. they do not build entitlement to the State Pension).
Current rates (from 6 April 2024):
- Main rate: 8% on profits between the LPL and UPL (reduced from 9% by the National Insurance Contributions (Reduction in Rates) Act 2023)
- Additional rate: 2% on profits above the UPL
Who pays:
- All self-employed individuals with profits above the LPL
- Individual (non-corporate) partners in a partnership are liable on their own share of the partnership's trade or profession
- From 6 April 2013, sleeping and inactive partners are also liable to Class 4 NICs on their taxable profits
- Married women/widows with a valid reduced rate election are still liable to Class 4 NICs in the same manner as any other self-employed person
Summary Table
| Feature | Detail |
|---|---|
| Who pays | Self-employed individuals |
| Basis | Percentage of taxable profits |
| Main rate (from 6 April 2024) | 8% (between LPL and UPL) |
| Additional rate (from 6 April 2024) | 2% (above UPL) |
| Collection method | Self Assessment (with income tax) |
| Benefit entitlement | None |
Citation sources
Following a change of view taking effect from 6 April 2013, HMRC consider that sleeping and inactive partners in a partnership are gainfully employed as self-employed earners and so are liable to Class 2 and Class 4 National Insurance Contributions. Individual (non-corporate) partners are liable to Class 2 and Class 4 NICs on their own share of the trade or profession carried on by the partnership. Class 2 and 4 contributions are also payable on the taxable profits of sleeping partners and inact
The National Insurance Contributions (Reduction in Rates) Act 2023 (the Act) reduces the main rate of employee Class 1 National Insurance contributions by 2 percentage points from 12% to 10% from 6 January 2024. The Act also provided that for the self-employed it will reduce the main rate of Class 4 National Insurance contributions by 1 percentage point, from 9% to 8%, and remove the liability to pay the weekly Class 2 flat rate for those with profits above £12,570 from 6 April 2024, while ensur
NIM30000 provides detailed guidance on the National Insurance contribution liability of those married women and widows who hold valid reduced rate elections. Those women are not excepted from liability to pay Class 4 NICs as explained at NIM30003. A self-employed married woman or widow who held a reduced rate election and who was chargeable to Income Tax on profits under Chapter 2 of Part 2 of ITTOIA 2005 (formerly Case I or II of Schedule D of ICTA 1988) is liable for Class 4 NICs in the same
PART 1 General Citation and commencement 1 1 These Regulations may be cited as the Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2017 and come into force on 6th April 2017. PART 2 Rates, limits and thresholds for National Insurance contributions Interpretation 2 In this Part— “ the Act ” means the Social Security Contributions and Benefits Act 1992; and “the Northern Ireland Act ” means the Social Security Contribution
Some content of this manual is being considered for archiving. If there is content you use regularly, please email hmrcmanualsteam@hmrc.gov.uk to let us know as soon as possible. National Insurance Contributions are divided into classes: Class 1 payable by employers (secondary class 1 contributions) and employees (primary class 1 contributions) on earnings from employment and usually collected alongside PAYE. Class 1A payable only by employers and some third parties on most taxable benefits prov
Class 4 National Insurance Contributions are payable by the self employed on profits between a lower and upper limit, and are collected with tax under a Self Assessment. Unlike Class 2, Class 4 contributions do not count at all for benefit purposes.