Class 4 national insurance contributions are paid by self-employed individuals (including partners in partnership) working in the UK1. Class 4 contributions are calculated based on a percentage of the individual's trading profits and are reported and collected via the individual's self assessment tax return. Class 4 contributions are not deductible to any extent from business profits for income tax purposes2.
For an overview of Class 4 contributions, see E8.316.
The self-employed may also be liable to pay Class 2 national insurance contributions, which are a weekly contribution also collected via the self assessment return3. See E8.301.
This article discusses the method of collection of Class 4 contributions.
Collection of Class 4 contributions
Class 4 contributions are calculated as part of the self assessment tax return, based on the trading profits for the tax year4. See E8.317 for the earnings on which Class 4 contributions are payable and E8.318 for the
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 17 Mar 2025 17:13