- Self-employed workers pay Class 4 National Insurance on profits, at 6% between £12,570 and £50,270 and 2% above that.
- Class 2 National Insurance is no longer mandatory, but it counts automatically once your profits reach £7,105 a year.
- You pay both classes through Self Assessment, alongside your income tax, by the 31 January deadline.
Self-employed National Insurance comes down to two classes: Class 4, which you pay on your profits, and Class 2, which is no longer mandatory but still matters for your State Pension.
For the 2026/27 tax year, Class 4 is charged at 6% on profits between £12,570 and £50,270, then 2% on anything above that. You pay it all through Self Assessment, so there’s no separate NI bill to deal with.
If you’d rather not work any of this out yourself, a good sole trader accountant can handle the lot.
Try our self-employed National Insurance calculator
Self-employed National Insurance calculator
Enter your annual profit (income after expenses) to see the Class 4 National Insurance you'll owe and how your State Pension record is affected.
Covers Class 4 National Insurance only, based on self-employment being your income for the year. Income tax is charged separately. National Insurance is the same UK-wide, including Scotland. Figures are a guide, not tax advice.
What National Insurance do the self-employed pay?
Self-employed people pay two classes of National Insurance, and which ones apply depends entirely on your profits.
Class 4 is the main one. It’s a percentage of your taxable profits, works a bit like income tax, and it’s collected through your tax return. Class 2 used to be a small flat weekly charge, but since April 2024 you no longer have to pay it. It still exists as a voluntary option, which we’ll come to.
Both are based on profit, not turnover. Profit is what’s left after you deduct your allowable business expenses.
Class 4 National Insurance
Class 4 applies once your profits pass £12,570 a year. It’s charged as a percentage of everything above that line, and you report and pay it as part of your Self Assessment return.
It doesn’t build up any extra State Pension entitlement on its own. Think of it as a tax on profit rather than a contribution that earns you something back.
Class 2 National Insurance
Class 2 is where most of the confusion sits. Since 6 April 2024, self-employed people with profits above the Small Profits Threshold no longer pay Class 2 at all.
Instead, HMRC treats those contributions as already paid, so you keep your entitlement to the State Pension and other contributory benefits without handing over a penny. If your profits are lower, you can still choose to pay it voluntarily.
What are the current self-employed NI rates and thresholds?
For 2026/27, self-employed National Insurance is built around three profit figures: £7,105, £12,570 and £50,270.
Here’s how they fit together.
Threshold | 2026/27 figure | What happens |
Small Profits Threshold | £7,105 | Class 2 treated as paid automatically; no payment needed |
Lower Profits Limit | £12,570 | Class 4 starts; charged at 6% above this |
Upper Profits Limit | £50,270 | Class 4 drops to 2% on profits above this |
Voluntary Class 2 rate | £3.65 a week | Optional, for profits under £7,105 |
So if your profits sit between £12,570 and £50,270, you pay 6% Class 4 on the slice inside that band. Earn above £50,270 and the rate on the excess drops to 2%. You can check the live figures on the GOV.UK self-employed National Insurance rates page if you want to confirm them yourself.
Your Class 4 threshold, £12,570, is the same as your income tax Personal Allowance. It's easy to assume you owe nothing under that figure, but check whether you've crossed the £7,105 line, because that's what protects your pension record.
A worked example
Say your taxable profit for the year is £40,000.
You’d pay Class 4 on the profit above £12,570, which is £27,430. At 6%, that’s £1,645.80 for the year. Nothing extra in Class 2, because your profits clear the £7,105 threshold automatically.
Push profits to £60,000 and it changes. You’d pay 6% on the £37,700 between the two limits, then 2% on the £9,730 above £50,270, giving £2,262 plus £194.60.
Work out what you’ll owe
Drop your expected profit in and the calculator shows your Class 4 estimate for the year. It’s a guide rather than a formal calculation, so treat the figure as a ballpark for budgeting.
For the fuller picture, including income tax alongside your NI, our guide on how much tax you’ll pay when self-employed walks through both together.
How do I pay self-employed National Insurance?
You pay self-employed National Insurance through Self Assessment, in the same return and the same payment as your income tax.
There’s no separate NI form and no separate bill. HMRC works out your Class 4 (and voluntary Class 2, if you’re paying it) from the profit figures on your return, then rolls it into your total.
The steps look like this:
- Register for Self Assessment when you start working for yourself, by 5 October after the end of your first tax year.
- Keep records of your income and allowable expenses through the year.
- File your return online by 31 January following the tax year it covers.
- Pay your combined income tax and NI bill by that same 31 January deadline.
If you’re new to the process, our self assessment for freelancers guide covers registration and filing in plain terms. For a deeper look at how the NI calculation itself works across all classes, see how National Insurance is calculated.
Payments on account
One thing that catches people out: HMRC may ask for payments on account. These are advance instalments toward next year’s combined tax and NI bill, usually split across 31 January and 31 July.
They’re based on your previous year’s liability, so your first proper year of profit can feel front-loaded. Budgeting for it early takes the sting out.
Should I make voluntary contributions?
Voluntary Class 2 contributions are worth considering if your profits are under £7,105, because that’s the point where automatic credit stops.
Below that threshold you pay nothing by default, but you also stop building qualifying years toward your State Pension. Paying voluntary Class 2 at £3.65 a week keeps that record intact, which can matter a lot if you have a lower-profit year or you’re just starting out.
Whether it’s worth it depends on your wider National Insurance history. A few things to weigh:
- How many qualifying years you already have toward the full State Pension.
- Whether this is a one-off low year or a longer pattern.
- Whether you’re also employed elsewhere and paying Class 1 through a payslip.
If you’re combining self-employment with employment, your overall position gets more tangled, and it’s worth getting a clear read on where you stand. Our sole trader tax guide is a useful next step, and you can check your record directly with HMRC before deciding.
How Sleek helps with self-employed National Insurance
Getting your National Insurance right isn’t hard once you know the thresholds, but it’s one more thing to track on top of running the business.
Sleek handles the calculation and the filing for you, so your Class 4 and any voluntary Class 2 land correctly on your Self Assessment return, on time. No guessing which class applies, no missed deadlines, no scrambling in January.
We work out what you owe, file it through Self Assessment, and keep you compliant year-round.
Disclaimer: The preceding information is not legal advice. This content is aimed to provide general guidance. For more formal or legal advice, contact Sleek directly.
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FAQs on self-employed National Insurance
Do I still have to pay Class 2 National Insurance?
No, not if your profits are £7,105 or more a year. Since April 2024, HMRC treats Class 2 as paid automatically at that level, so you keep your State Pension entitlement without paying. Below £7,105 it becomes voluntary, at £3.65 a week for 2026/27, if you want to protect your contribution record.
Is self-employed National Insurance separate from income tax?
No, they’re collected together. Both Class 4 National Insurance and income tax are charged on your taxable profits and paid through the same Self Assessment return by 31 January. They use different thresholds and rates, though, so it’s completely normal to owe both on the same profit in the same year.
Do I pay National Insurance if I’m employed and self-employed?
Yes, potentially both. You’ll pay Class 1 through your employer’s payroll on your wages, and Class 4 on your self-employed profits through Self Assessment. There’s an annual maximum that stops you overpaying across classes, and HMRC usually adjusts for it automatically once your return is processed.
What happens if I pay my National Insurance late?
HMRC charges interest on late National Insurance, and penalties can follow. Because Class 4 is paid alongside your income tax, a late Self Assessment payment means the whole combined bill is late. Filing and paying by 31 January is the cleanest way to avoid an avoidable charge on top of what you already owe.
Does Class 4 National Insurance count toward my State Pension?
No, Class 4 on its own doesn’t build State Pension entitlement. It works more like a tax on profit. Your pension record is protected by the automatic Class 2 credit once profits reach £7,105, or by voluntary Class 2 below that level. Class 4 sits separately and doesn’t earn qualifying years.
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How do I know my profit figure for National Insurance?
Your profit is your self-employed income minus your allowable business expenses, not your total turnover. That final profit figure is what HMRC applies the Class 4 rates to. Keeping clean records through the year makes this straightforward, and it’s the same figure your income tax is based on, so there’s no separate calculation to run.
Do I need to register before paying self-employed National Insurance?
Yes, you must tell HMRC when you become self-employed. Register for Self Assessment by 5 October following the end of your first tax year as a sole trader or partnership. Once registered, HMRC works out your Class 4 and any voluntary Class 2 from your return, so there’s no separate National Insurance registration to worry about.
