Self Employed NI Class 4 Confusion

JakeTheBuilder

Hi guys, as the title states- I'm a little confused calculating self-employed NI class 4 contributions.

My net is circa 21000k. Are NI class 4 calculated off this, or my taxable income i.e- 9500 (21000-11500 (personal allowance)). My accounting app isn't clear and certain websites have different answers. I feel the direct gov website should utilise examples instead of just stating things.

Apologies if this is in the wrong place (I'm new to the site) and thanks in advance for any help

JakeTheBuilder

I've tried to attach a screenshot of an excel spread sheet but it will not allow it.

JakeTheBuilder

//ibb.co/d9aELv - I believe this has worked. Many thanks

Tammykitty

Its actually neither


Its based on your income of £21,000 less the lower earning limit


extract from gov.uk
How much you pay

ClassRate for tax year 2017 to 2018


Class 2
£2.85 a week


Class 4
9% on profits between £8,164 and £45,000
2% on profits over £45,00


Therefore you will pay 9% of £12,836 (£21,000 - £8,164) which is £1,155.24

JakeTheBuilder

Thanks Tammy, I'm still trying to get my head around my self assessment :money: