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

Article ID: 806
Last updated: 27 Aug, 2019

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

For 2018-19 you pay:

  • 9% on annual profits between £8,424 and £46,350
  • 2% on any profit over £46.350

You pay additional contributions on the difference between your personal allowance and the amount on which you pay Class 4 NIC. For 2018–19, this difference is £3,426.

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
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: 27 Aug, 2019
Revision: 13
Views: 11774
This article was:  


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folder Tax Return Production -> SA100 Individual Return