CIPP Payroll Reference Book 2021-22_v1_210701_MemberOnly

Class 4 National Insurance (for Self-employed Earners)

Percentage contribution rates from 6th April 2004

Lower Profits Limit

Rate Between Limits

Upper Profits Limit

Rate above Upper Limit *

Date from COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS £ % £ % 06/04/2004 4,745 8.00 31,720 1.00 06/04/2005 4,895 8.00 32,760 1.00 06/04/2006 5,035 8.00 33,540 1.00 06/04/2007 5,225 8.00 34,840 1.00 06/04/2008 5,435 8.00 40,040 1.00 06/04/2009 5,715 8.00 43,875 1.00 06/04/2010 5,715 8.00 43,875 1.00 06/04/2011 7,225 9.00 42,475 2.00 06/04/2012 7,605 9.00 42,475 2.00 06/04/2013 7,755 9.00 41,450 2.00 06/04/2014 7,956 9.00 41,865 2.00

06/04/2015

8,060

9.00

42,385

2.00

06/04/2016

8,060

9.00

43,000

2.00

06/04/2017

8,164

9.00

45,000

2.00

8,424 No printing, copying or reproduction permitted. 9.00 46,350 8,632 9.00 50,000 9,500 9.00 50,000 9,568 9.00 50,270

06/04/2018

2.00

06/04/2019

2.00

06/04/2020

2.00

06/04/2021

2.00

From 6th April 2003 a contribution has been payable on all earnings above the upper limit in line with employed earners’ Class 1 Contributions. N.B. tax relief is allowable on 50% of contributions paid. Budget 2017 produced an announcement that the rate for Class 4 NICs would increase to 10%, however this was reversed, almost immediately. Consultation is promised in 2018 with the intention to abolish Class 2 NICs and implement a revised Class 4 scheme for April 2019.

In September 2018 the Government announced that the planned abolition of Class 2 NICs and the implementation of a revised Class 4 NICs scheme would not proceed. However, following

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