Self-Employed National Insurance Changes UK 2026: What You'll Pay

If you're self-employed in the UK, you pay two types of National Insurance: Class 2 (a flat weekly rate) and Class 4 (a percentage of your profits). Here's exactly what you'll pay in 2026, when you pay it, and how to legally reduce your bill.

Class 2 National Insurance: The Flat Weekly Rate

Rate for 2026/27: £3.45 per week (£179.40 per year).

Who pays it: Anyone with self-employed profits of £6,725 or more per year.

If your profits are between £6,725 and £12,569, Class 2 NI is voluntary — but paying it protects your State Pension and entitlement to benefits like Maternity Allowance.

When you pay: Class 2 NI is included in your Self Assessment tax bill, due 31 January after the tax year ends.

Class 4 National Insurance: Percentage of Profits

Class 4 NI is calculated as a percentage of your taxable profit (income minus allowable expenses).

Rates for 2026/27:

• 6% on profits between £12,570 and £50,270
• 2% on profits above £50,270

No Class 4 NI is paid on the first £12,570 of profit (the same threshold as Income Tax).

Self-Employed NI If You Also Have a Job

If you're employed and self-employed (e.g., full-time job + side hustle), you pay:

• Class 1 NI through your employer (12% on earnings £12,570-£50,270, then 2%)
• Class 2 NI on your self-employed profits (£3.45/week if profit ≥ £6,725)
• Class 4 NI on self-employed profits (6% on £12,570-£50,270, 2% above)

Important: If your total employed + self-employed earnings exceed £50,270, your Class 1 and Class 4 rates drop to 2%. HMRC automatically adjusts this when you file your Self Assessment.

When Do You Pay Self-Employed NI?

Self-employed National Insurance (Class 2 + Class 4) is paid through Self Assessment, not monthly like employed NI.

Payment deadlines:

• 31 January (following the tax year): Your full tax bill, including NI, is due. Example: for 2026/27 (6 April 2026 to 5 April 2027), payment is due by 31 January 2028.
• Payments on account (if your bill exceeds £1,000): You'll pay 50% by 31 July and 50% by 31 January the following year.

Important: Unlike employed workers, you don't pay NI monthly. Budget for a lump sum in January (and July if payments on account apply).

How to Reduce Your Self-Employed NI (Legally)

Class 4 NI is based on your taxable profit, so the same strategies that reduce Income Tax also reduce NI:

• Claim all allowable expenses: Every £1,000 of expenses saves you £60 in Class 4 NI (on the 6% band). See our complete allowable expenses guide.
• Use the trading allowance: If your self-employed income is under £1,000, you're automatically exempt from Income Tax and NI (no need to register or file).
• Contribute to a pension: Personal pension contributions reduce your taxable profit (and therefore Class 4 NI). Example: £5,000 pension contribution saves £300 in Class 4 NI.
• Consider a limited company: If your profit exceeds £50,000, switching to a Ltd company can reduce your total NI bill. You'll pay yourself a small salary (subject to Class 1 NI) and take the rest as dividends (no NI). Read our sole trader vs limited company comparison.

Class 2 NI and Your State Pension

Class 2 NI contributions count toward your State Pension and eligibility for benefits like:

• Maternity Allowance
• Bereavement Support Payment
• Contribution-based Employment and Support Allowance

You need 35 years of NI contributions to qualify for the full State Pension (currently £203.85/week in 2026).

If your profit is below £6,725: You're not required to pay Class 2 NI, but you can voluntarily pay it (£179.40/year) to protect your State Pension. This is especially important if you have gaps in your NI record (e.g., years with low income or time abroad).

Check your State Pension forecast at GOV.UK.

Summary: Self-Employed NI in 2026

NI Type	Rate (2026/27)	When You Pay
Class 2	£3.45/week (£179.40/year)	If profit ≥ £6,725
Class 4 (lower rate)	6% on profits £12,570-£50,270	Via Self Assessment
Class 4 (upper rate)	2% on profits above £50,270	Via Self Assessment

Payment deadline: 31 January (after the tax year ends). Payments on account apply if your total tax + NI exceeds £1,000.

FAQ: Self-Employed National Insurance

Do I pay NI on my first £12,570 of self-employed profit?

No Class 4 NI is charged on the first £12,570. However, you'll pay Class 2 NI (£179.40/year) if your profit exceeds £6,725.

What's the difference between Class 2 and Class 4 NI?

Class 2: A flat weekly rate (£3.45) that protects your State Pension.
Class 4: A percentage of your profit (6% or 2%) that contributes to the tax system but doesn't count toward State Pension.

Can I pay NI monthly instead of annually?

No. Self-employed NI is paid through Self Assessment as a lump sum (31 January, plus payments on account if applicable). You can set up a budget account to save monthly for the January bill.

What if I forget to pay my NI?

HMRC will charge interest and penalties on late payments. If you miss Class 2 NI, you can pay up to 6 years late to protect your State Pension, but interest applies.

Do I need to register with HMRC to pay self-employed NI?

Yes. Register as self-employed with HMRC by 5 October after your first tax year of trading. You'll then file Self Assessment annually, which includes your NI.

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