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 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% |
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