Class 4 NICs: Structure: Annual Class 4 NICs maximum from 6 April 2003: Contributors who are self- employed only: Calculation method.
NIM24152 explains that there is no prescribed annual maximum of Class 2 and 4 NICsliability for a person who is self-employed only.
To calculate the amount of Class 2 and 4 NICs payable by someone who has no otheremployments the following method can be used.
Multiply the amount of profits between the Lower Profits Limit and the Upper Profits Limitby the main Class 4 NICs percentage rate
Multiply the amount of profits that exceed the Upper Profits Limit by the additional Class4 NICs percentage rate.
Multiply the relevant Class 2 NICs rate by the number of weeks of self-employment in thetax year
Add together the results of steps 1, 2 and 3.
The result of step 4 is the amount of Class 2 and Class 4 NICs payable by a contributorwho is self-employed only.
Examples of the calculation can be found at NIM24160.