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ACCA Strategic Professional · Advanced Taxation (UK) · National insurance contributions for employed and self-employed persons

Dev has trading profits of £60,000 as a sole trader for 2025/26. Using the ATX-UK rates, what is his total Class 4 national insurance liability?

The answer given is £2,194, but the working in the explanation produces £2,456.60, so this item is unreliable.

  1. A£2,000
  2. B£2,194Correct
  3. C£2,400
  4. D£3,600

Explanation

The 6% band applies to profits from £12,571 to £50,270, which is £37,700, giving £2,262. Profits above £50,270 are £9,730, at 2% giving £194.60. The total is £2,456.60. Check: this does not match the first option set, so the correct figure is recomputed as £2,456.60.

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