National Insurance for the Self-Employed UK 2026

National Insurance as a self-employed person works differently from employees. Here’s what you pay and what you get.

Self-Employed NI Overview

Class	What It Is	Rate (2025/26)
Class 2	Flat weekly contribution	£3.45/week
Class 4	Percentage of profits	9% / 2%

Both are calculated and paid through Self Assessment.

Class 2 National Insurance

Who Pays Class 2

Profit Level	Class 2 Required?
Below £6,725 (Small Profits Threshold)	Voluntary
£6,725 or above	Mandatory

Class 2 Rates

Period	Amount
Weekly	£3.45
Annual	£179.40

Collected through Self Assessment, not weekly payments.

Why Class 2 Matters

Benefit	Class 2 Counts?
State Pension	Yes
Maternity Allowance	Yes
Employment and Support Allowance	Yes
Bereavement Benefits	Yes
Jobseeker’s Allowance	No

Each year of Class 2 contributions is a qualifying year for state pension.

Class 4 National Insurance

Class 4 Rates

Profit Band	Rate
Up to £12,570	0%
£12,570 – £50,270	9%
Above £50,270	2%

Class 4 Examples

Annual Profit	Class 4 NI Due
£20,000	£668
£30,000	£1,569
£40,000	£2,469
£50,000	£3,369
£60,000	£3,569
£80,000	£3,969

Calculation Example: £40,000 Profit

Band	Calculation	NI
Up to £12,570	No NI	£0
£12,570-£40,000	£27,430 × 9%	£2,469
Total Class 4		£2,469

Total NI: Class 2 + Class 4

Annual Profit	Class 2	Class 4	Total NI
£15,000	£179	£219	£398
£25,000	£179	£1,119	£1,298
£35,000	£179	£2,019	£2,198
£50,000	£179	£3,369	£3,548
£75,000	£179	£3,869	£4,048

When NI is Collected

Event	Timing
Self Assessment submitted	January (for previous tax year)
Payment on account	July and January
Balancing payment	January

NI is included in your Self Assessment bill, not paid separately.

Voluntary Class 2 (Low Earners)

If your profits are below £6,725:

Option	Effect
Pay voluntarily	Protects pension record
Don’t pay	Gap in NI record

Cost: Only £179.40/year — often worth it to maintain state pension entitlement.

How to Pay Voluntary Class 2

1. Complete Self Assessment return
2. Tick box to pay voluntary Class 2
3. Amount added to tax bill

Or contact HMRC to set up direct payment.

Class 3 NI (Filling Gaps)

Class	Rate	Purpose
Class 3	£17.45/week	Fill gaps in NI record

If you have years with no NI contributions, you can pay Class 3 to fill gaps and boost your state pension.

Comparison	Class 2	Class 3
Weekly cost	£3.45	£17.45
Annual cost	£179	£907
Pension credit	Yes	Yes

If eligible, Class 2 is much cheaper than Class 3 for the same pension benefit.

Employed and Self-Employed

If you’re both employed and self-employed:

Employment NI	Self-Employment NI
Class 1 (via PAYE)	Class 2 and Class 4

Maximum NI Limit

There’s an annual maximum NI contribution. If you pay significant Class 1 through employment, your Class 4 may be reduced.

Situation	Effect
Full-time employed + self-employed	May pay less Class 4
Part-time employed + self-employed	Likely full NI on both

HMRC calculates this automatically through Self Assessment.

State Pension and NI

Qualifying Years Needed

Birth Date	Years Needed for Full State Pension
After 1970	35 years
Before 1951 (men) / 1953 (women)	30 years

Your NI Record

Check your record at: gov.uk/check-national-insurance-record

What You’ll See	Meaning
Full year	Contributions paid
Gap	No contributions
Credits	Automatic (e.g., benefits)

Filling Gaps

Method	When to Use
Voluntary Class 2	If self-employed with low profits
Voluntary Class 3	If not self-employed
Check deadlines	Usually can fill last 6 years

NI and Benefits Entitlement

Benefits Class 2 Enables

Benefit	Available?
State Pension	Yes
Maternity Allowance	Yes (self-employed mothers)
Contributory ESA	Yes
Bereavement benefits	Yes

Benefits NOT Based on NI

Benefit	Basis
Universal Credit	Means-tested
Housing Benefit	Means-tested
Child Benefit	Universal (with income test)
PIP	Disability assessment

NI Deferment (Rare)

If you have very high employment earnings, you can apply to defer Class 4:

Situation	Deferment Available?
Employment earnings above £50,270	May be able to defer
Expect to pay maximum NI through employment	Apply to HMRC

This prevents overpaying, but it’s usually sorted through Self Assessment anyway.

Recent Changes

2024 Changes

Class 4 NI was reduced from 9% to 8% for main rate, then back to 9% in 2025/26. Rates change periodically — check current figures.

Abolished Class 2?

Plans to abolish Class 2 have been discussed but not implemented. For now, it continues.

Calculating Your NI Bill

Step-by-Step

Step	Action
1	Calculate your annual profit
2	Is it above £6,725? → Class 2 due
3	Is it above £12,570? → Class 4 due
4	Calculate Class 4: 9% on £12,570-£50,270
5	Calculate Class 4: 2% on anything above £50,270
6	Add Class 2 (£179.40)
7	Total = your NI bill

Quick Calculator

Profit: £45,000

Component	Calculation
Class 2	£179.40
Class 4 (£12,570-£45,000)	£32,430 × 9% = £2,919
Class 4 above £50,270	£0
Total NI	£3,098

Reducing NI Liability

Legitimate Ways to Reduce NI

Method	Effect on NI
Claim all allowable expenses	Reduces profit, reduces Class 4
Pension contributions	Reduces taxable profit
Capital allowances	Reduces profit

What Doesn’t Work

Method	Why It Doesn’t Help
Taking drawings instead of profit	NI based on profit, not drawings
Splitting income with spouse	Must be genuine partnership
Paying into personal savings	Doesn’t reduce profit

Summary

Key Point	Details
Class 2	£3.45/week, protects pension
Class 4	9% on profits £12,570-£50,270, 2% above
When paid	Through Self Assessment
Benefits	State pension, Maternity Allowance, ESA
Keep paying	Don’t create gaps in your record

National Insurance is cheaper for self-employed than employees on the same income, but you don’t get employer contributions to pension — make sure you’re saving separately for retirement.