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 individuals who are exempt from a liability to Class 4 contributions.
Children under the age of 16
A child who at the beginning of the tax year for which contributions are due is under the age of 16 can apply for a certificate of exception from Class 4 contributions before the beginning of that year4. HMRC is empowered to accept
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 16:50