Self employed class 4 NIC rates to increase by 1.25% from April 2022

September 17, 2021|In KRW Tax news|By Keith Witchell

In order to bring parity between employed and self-employed workers, it was confirmed that the 1.25% increase will also be applied to the Class 4 National Insurance rates paid by the self-employed (which includes partners in a partnership or LLP). This means that the current Class 4 NIC rate of 9%, which applies to profits from £9,568 to £50,270 per annum, will increase to 10.25% from April 2022, while the reduced rate applying to profits over £50,270 per annum will increase from 2% to 3.25%. For someone with a profit of £30,000 per annum this is an additional annual NIC cost of £255.

For further advice on this matter, please contact me.

Keith Witchell