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

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

For 2024 -25 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
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: 06 Feb, 2025
Revision: 20
Tax Return Production -> What's the difference between personal allowance and Class 4 NIC rates?
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