(SSCBA 1992, s. 15)

(Direct Tax Reporter: ¶1017-650ff.)

Self-employed people whose profits or gains are over a certain amount have to pay Class 4 contributions as well as Class 2 contributions. These contributions are earnings-related and paid at a main rate on trading profits (earnings) between the lower and upper annual limits (which are the same as the Class 1 earnings threshold and upper earnings limit), with an additional 2% on profits above the upper limit since 6 April 2011.

Rate on profits between upper and lower limits

Annual lower profits limit(1)

Annual upper profits limit

Rate on profits in excess of upper limit

Maximum contribution

Tax year

%

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