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NI 4

07/05/2019 14:37:11
I am self-employed and would like to know how my NI 4 contribution is calculated. If my profits for the year is £13 000, does the £11 800 get deducted before NI 4 is calculated?
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Re:NI 4

07/05/2019 15:01:40
Hi,

Thanks for your question.

No the £11,850 is your personal allowance against income tax only. The threshold for Class 4 National insurance is £8424 for 2018/19.

Where your self-employment profit is £13,000 you would pay 9% Class 4 National Insurance on £4576 (the difference between the £8464 and the £13000).

I hope this helps.
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NI 4

09/05/2019 07:10:23
Thank you for your help, it was most useful. I have another question if you don't mind. I have been paying NI 4 for 4 years. I am not a citizen of the UK and work on an ancestral visa. I intend to return to my home country soon and will not qualify for any benefits of the NI 4 which I have paid to date. Can I claim any taxes back?
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Re:NI 4

09/05/2019 12:37:46
Hi,

Thanks for your further question.

You will need to contact the National Insurance Contribution Helpline on 0300 200 3500 to see if you are exempt from Class 4 NIC.

Once you receive confirmation you may have to consider amending your Self Assessment Returns.
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NI 4

10/05/2019 14:04:35
Class 4 NI does not qualify for benefits or anything. It is nothing other than a tax and is, therefore, not reclaimable. It is supposedly there to make it fair as those who are employed pay class 1 at 12.5% every month.
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NI 4

14/06/2019 11:40:06
Can I ask a question related to Class 4 NI?
I work for a company and get paid on a salary ie PAYE and I also do some freelance admin work.

Two years ago an accountant did my books and said I was "exempt from paying Class 4 NI because of my PAYE status"

This year I did my own tax return online and couldn't find anywhere to confirm that the above was correct so ended up paying Class 4 NI on top of the other tax so in effect 20% and then another 10% fo NI4.

Do you know if I was correct to do this, or in fact should have ticked the 'exempt' box?

thanks
Elaine Elaine Terry
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Re:NI 4

14/06/2019 13:43:26
Hi

You would not be exempt from Class 4 unless you meet any of the categories listed on the return, however as you are also under PAYE after you have submitted your return the calculation on your Class 4 will be adjusted where relevant to take into account Class 1 paid as an employee.

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