Self-employed National Insurance
Most self-employed people are required to pay Class 4 National Insurance contributions (NICs). Class 4 NICs are payable if their profits are £12,570 or more a year.
Class 4 NIC rates are currently 6% for chargeable profits between £12,570 and £50,270 plus 2% on any profits over £50,270.
A number of categories of people are exempt from paying Class 4 NICs, these include:
- People under the age of 16 at the beginning of the year of assessment.
- People over State pension age at the beginning of the year of assessment. A person who attains State pension age during the course of the year of assessment remains liable for Class 4 NICs for the whole of that tax year.
- People receiving profits in their capacity as a trustee, executor or administrator of a person liable to tax under ITTOIA2005/S8.
The mandatory payment of Class 2 National Insurance Contributions (NICs) for the self-employed was abolished effective from 6 April 2024. It can be advantageous for some self-employed people who do not pay NICs through self-assessment to make voluntarily Class 2 NICs. This can help them to access certain contributory benefits including the State Pension. It is important to confirm that this would be beneficial before making any voluntary payment. The current 2026-27 weekly rate for making voluntary Class 2 NICs is £3.65.
Most self-employed individuals pay Class 2 and Class 4 NICs via the self-assessment system. Certain self-employed individuals, such as examiners, moderators, invigilators, and ministers of religion, without a salary, do not pay National Insurance through self-assessment but it may be beneficial for them to make voluntary contributions.
