Class 4 Contributions

Class 4 Contributions are a type of National Insurance payment in the UK that self-employed individuals and partners in a business make to qualify for state benefits, such as the State Pension. They are calculated based on your profits or earnings, typically at a set percentage. Paying these contributions helps establish your entitlement to various government benefits and contributes to your social security record. Unlike Class 2 contributions, which are fixed, Class 4 contributions are directly linked to how much you earn from self-employment, ensuring your contributions reflect your actual income level.