Class 3 contributions only count towards State Pension and Bereavement Benefit entitlement. The main reason for paying Class 3 NICs is to ensure that a person's contribution record is preserved to provide entitlement to these benefits, though care needs to be taken not to pay unnecessarily as it is not necessary to have contributions in every year of a working life in order to qualify. Class 4 Class 4 contributions are paid by self-employed people as a portion of their profits. The amount due is calculated with income tax at the end of the year, based on figures supplied on the SA100 tax return. Contributions are based around two thresholds, the Lower Profits Limit (LPL) and the Upper Profits Limit (UPL). These have the same cash values as the Primary Threshold and Upper Earnings Limit used in Class 1 calculations. No class 4 NICs are due on profits up to and including the LPL. Above the LPL, up to and including the UPL, class 4 NICs are paid at a rate which can vary but has been 9% for several years. Above the UPL, class 4 NICs are paid at a second rate, which has been 2% for several years Class 4 contributions do not form part of a qualifying contribution record for any benefits, including the State Pension, as self-employed people qualify for these benefits by paying Class 2 contributions. NI credits People who are unable to work for some reason may be able to claim NI credits (technically credited earnings, since 1987). These are equivalent to Class 1 NICs, though are not paid for. They are granted either to maintain a contributions record while not working, or to those applying for benefits whose contribution record is only slightly short of the requirements for those benefits. In the latter case, they are unavailable to fill "gaps" in past years in contribution records for some benefits. Benefits The benefit component comprises a number of contributory benefits of availability and amount determined by the claimant's contribution record and circumstances. Weekly income benefits and some lump-sum benefits to participants upon death, retirement, unemployment, maternity and disability are provided. Current benefits Benefits for which there is a contribution condition: Bereavement benefit Employment and Support Allowance (new-style) Jobseeker's Allowance (new-style) Statutory Sick Pay State Pension Former benefits Historic benefits for which there was a contribution condition: Incapacity Benefit Invalidity Benefit State Earnings-Related Pension Scheme