What's the difference between personal allowance and Class 4 NIC rates?

Article ID: 806

Last updated: 26 Mar, 2026

Your Class 4 National Insurance contributions (NIC) for any tax year are based on your profits for that year.

For 2025-26 you pay:

For further information and for previous tax years, see the table below. You can also read more about this on the HMRC website.

Financial years	Personal allowance (PA)	Lower limit	Difference	% Charged for income between lower and upper limit	Upper limit	% Charged for income above upper limit
2025-26	£12,570	£12,570	£0	6%	£50,270	2%
2024-25	£12,570	£12,570	£0	6%	£50,270	2%
2023-24	£12,570	£12,570	£0	9%	£50,270	2%
2022-23	£12,570	£11,908	£661	9.73%	£50,270	2.73%
2021-22	£12,570	£9,568	£3,002	9%	£50,270	2%
2020-21	£12,500	£9,500	£3,000	9%	£50,000	2%
2019-20	£12,500	£8,632	£3,868	9%	£50,000	2%
2018-19	£11,850	£8,424	£3,426	9%	£46,350	2%
2017-18	£11,500	£8,164	£3,336	9%	£45,000	2%
2016-17	£11,000	£8,060	£2,940	9%	£43,000	2%
2015–16	£10,600	£8,060	£2,540	9%	£42,385	2%
2014–15	£10,000	£7,956	£2,044	9%	£41,865	2%
2013–14	£9,440	£7,755	£1,685	9%	£41,450	2%
2012–13	£8,105	£7,605	£500	9%	£42,475	2%
2011–12	£7,475	£7,225	£250	9%	£42,475	2%
2010–11	£6,475	£5,715	£760	8%	£43,875	1%
2009–10	£6,475	£5,715	£760	8%	£43,875	1%
2008–09	£6,035	£5,435	£600	8%	£40,040	1%
2007–08	£5,225	£5,225	0	8%	£34,840	1%
2006–07	£5,035	£5,035	0	8%	£33,540	1%
2005–06	£4,895	£4,895	0	8%	£32,760	1%
2004–05	£4,745	£4,745	0	8%	£31,720	1%

Article ID: 806

Last updated: 26 Mar, 2026

Revision: 21

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