class 4 contributions

[Tily Bud]

just wondered if any one knew what these are x my net was over the cut off for these this year so i will have to pay some x
i already pay the voluntary ones x

[madasahatter]

Class 4 NI contributions are made on any income (profits) over and above the taxable allowance. One of the sad facts that the more you earn the more you give to the taxman :-( They are in addition to class 2 contributions that all self employed must pay (unless your earning are low enough to enable you to apply for an exemption)

[Tily Bud]

Ive just looked on th IR website and it says class 4 are charged at 8%, does that mean i will be charged 8% of what i earn over the threshold ?

[Chatterbox Childcare]

It is 8% on any profit made.

[Daftbat]

I have tried loads of times to work out what exactly class 4 contributions are paid FOR. I have checked every website i can and can't sem to see that there are any extra benefits like enhanced pension, sick pay etc. I have come to the conclusion its just money that gets sucked in to a void and an excuse for the nasty taxman to get more out of me.:mad:

If anyone can tell me more i would be grateful:panic: