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Is Class 4 NI threshold pro-rata?

Self-emplyed part way through the tax year 2019/20

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Self-emplyed part way through the tax year 2019/20. Class 4 NI tresh hold is £8632 for the full year. Do we have to pro rata the tresh hold based on number of weeks being self-emplyed in the year? Class 2 is pro-ratad, but not sure about Class 4...?

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RLI
By lionofludesch
13th Jan 2021 16:39

No, it's not.

Neither is Class 2, actually. It's charged on a weekly basis which is not quite the same thing as pro rata. You're either self employed during the week, in which case you owe £3.05, or you're not. It's very binary.

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Replying to lionofludesch:
in a boat
By CloudAngel
13th Jan 2021 16:55

Thank you for your reply. If the person has worked up to some point in the year and paid class 1 NI, then had a couple of months gap and then started self-employment, is the class 4 treshhold still unaffected?

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Replying to CloudAngel:
RLI
By lionofludesch
13th Jan 2021 17:26

I can't really put it more clearly than I have already.

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Replying to CloudAngel:
Northumberland flag
By MJShone
13th Jan 2021 17:54

It gets more complicated if there's also Class 1 in the year - that can restrict the amount of Class 4 payable - see Social Security (Contributions) Regs 2001, reg 100.

Though that doesnt mean that there's any apportionment, of course.

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By Paul Crowley
13th Jan 2021 17:18

Class 4 works per year
Reputable software gets it right

All three questions Anon
Why?

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Replying to Paul Crowley:
avatar
By Youareatit
13th Jan 2021 17:24

A 'deleter' as well.

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Replying to Youareatit:
avatar
By Paul Crowley
13th Jan 2021 17:47

Concur
Clearly not an accountant in practice

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By Paul D Utherone
13th Jan 2021 18:16

Classes 1, 2 & 4 interact based on annual maxima.

C1NIC relates to the employment

C2NIC is paid weekly following commencement, but through the SA return due on 31 Jan

C4NIC is calculated without apportioning bands for a part year, but will be adjusted for any C1NIC arising between PT & UEL - see 2001/1004 Social Security (Contributions) Regulations 2001 Reg 100 Annual maximum of Class 4 contributions due under section 15 of the Act

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