Self-employment
You'll learn how class four National Insurance works for self-employed traders and partners, including when it's charged, how to calculate it, and when payments are due.
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In this lesson
- 0:00 Class Four National Insurance Overview
- 0:09 Profit Thresholds and Rate Structure
- 0:46 Calculating Taxable Profits for Class Four
- 1:23 Self-Assessment Collection and Payment Dates
- 1:40 Worked Example: Partner National Insurance Calculation
About this lesson
This video covers the key thresholds (£12,570 lower limit and £50,270 upper limit), the tiered rates of 6% and 2%, and why class four NI is collected through self-assessment rather than PAYE. You'll see a worked example showing how to calculate class four NI for a partner joining a business mid-year, which is essential for the TX (Taxation) paper where self-employment income calculations are regularly tested.
Duration: 3m
Transcript
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