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Self-employed National Insurance rates
Showing changes made on 6 April 2016
- Newest version
- 6 April 2017 see all versions
- Oldest version
- 6 April 2015
You usually pay 2 types of National Insurance if you’re self-employed:
- Class 2 if your profits are £5,965 or more a year
- Class 4 if your profits are £8,060 or more a year
You work out your profits by deducting your expenses from your self-employed income.
How much you pay
| Class |
Rate
for
tax
year
|
|---|---|
| Class 2 | £2.80 a week |
| Class 4 |
9% band:
9%
on
profits
between
£8,060
and
2% band: 2% on profits over |
You can see National Insurance rates for past tax years .
How to pay
Most people pay Class 2 and Class 4 National Insurance through Self Assessment .
You must tell HM Revenue and Customs ( HMRC ) when you become self-employed as a sole trader or partnership .
Special rules for specific jobs
Some self-employed people don’t pay National Insurance through Self Assessment, but may want to pay voluntary contributions . These are:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who don’t receive a salary or stipend
- people who make investments for themselves or others - but not as a business and without getting a fee or commission
Document information
Last updated:
6 April 2017
Updated Class 2 and Class 4 profit threshold for 2017-18 tax year; updated Class 2 and Class 4 weekly rates for 2017-18 tax year.
View the most up-to-date version
See this update
-
You're comparing:
Updated Class 4 bands for 2016-17 tax year: 9% band is now £8,060-43,000; 2% band is now £43,000+
-
Added self-assessment exceptions: exams professions, land and property businesses, ministers of religion, investors.
See this update
Published:
6 April 2015
First Published.