For 2016/17 self-employed individuals pay Class 4 NICs on profits between £8,060 and £43,000 at a rate of 9% and 2% on any profits in excess of £43,000. The maximum payable at 9% being £3,144.60 for the year.
For the tax year 2017/18 Class 4 NICs will remain at 9% for profits between £8,164 and £45,000. The maximum payable at 9% being £3,315.24 for the year.
From 6 April 2018 Class 4 NIC will increase by 1% to 10% and from 6 April 2019 it will increase by a further 1% to 11% from 6 April 2019.
As previously announced Class 2 NIC will be abolished.
The increase in Class 4 NICs will affect approximately 2.5 million self-employed individuals who will see their annual NICs increase by approximately £240 per year from April 2018.