# Class 4 N.I

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**1,774**Registered
Can anyone advise me here.

If Taxable Profits for a Self-Employed Person are £8529 what should the Class 4 payable be on this amount.

I calculated it as £8529 - £6475 = £2054 x 20% = £410.80 Tax and Class 4 at £2054 x 8% = £164.32 but on the HMRC Website it automatically calculates Class 4 as £197.04. Is this an error?

Thanks

If Taxable Profits for a Self-Employed Person are £8529 what should the Class 4 payable be on this amount.

I calculated it as £8529 - £6475 = £2054 x 20% = £410.80 Tax and Class 4 at £2054 x 8% = £164.32 but on the HMRC Website it automatically calculates Class 4 as £197.04. Is this an error?

Thanks

## Comments

150Registered1,774RegisteredHi Andrew,

I thought the Class 4 was calculated from your profit figure after deducting the £6475 Personal Allowance the same as the 20% Tax due?

Thanks for your reply

135Registeredthe first £5715 will be Nil

on the rest (8529-5715) 2814 @ 8% 225.12

Therefore total class 4 NIC will be £225.12

6,970Registered1,440Moderator, FMAAT, AAT Licensed AccountantAgree

And if it is for 2009/10 the rates are the same anyway.

Burg

1,438MAAT, AAT Licensed Accountant1,774RegisteredI am studying Unit 18 at the moment so wasnt sure if this was incorrect or not! Had to rely on you experts to help me out with this.

1,774RegisteredThat was bugging me so thanks again and hopefully if this comes up in the exam I will remember what to do after this! :laugh: