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* **Class 4 National Insurance (NI):** This is where things get a bit more interesting. Class 4 NI is calculated as a percentage of your taxable profits. It's similar to the way employees pay NI through their salaries, but it's based on your earnings from self-employment. There are usually two thresholds here: one for when you start paying Class 4, and another for the higher rate. The percentage you pay depends on how much profit you make. These **National Insurance contributions** are vital to making sure you have access to important benefits, such as the state pension. Remember that all of this is subject to change, and that the best thing to do is make sure you **calculate** them properly.
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