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

Article ID: 806
Last updated: 21 Mar, 2024

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

For 2023 -24 you pay:

  • 9% on annual profits between £12,570 and £50,270
  • 2% on any profit over £50,270

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
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: 21 Mar, 2024
Revision: 19
Views: 13772
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