Self-employed National Insurance in 2026/27: Class 2 and Class 4 explained
Published · 3 min read · Figures checked . UK rules and rates change, so check the official sources below before you act.
Self-employed people can pay two kinds of National Insurance, Class 2 and Class 4. This guide explains the 2026/27 rates and limits, how they are usually paid, and how they link to a State Pension record.
Who this guide is for
It is for sole traders and partners in the UK who work for themselves and file a Self Assessment tax return. It does not cover employees, who pay Class 1 through their wages, or limited company directors paid through payroll. Special rules apply to a few groups, such as examiners and invigilators, who pay Special Class 4 and cannot use Self Assessment.
Class 4: the one most people pay
Class 4 is charged on your profits, not your sales. Your profits are your self-employed income minus allowable expenses. If your profits for the year are £12,570 or less, you do not pay Class 4.
Above that level, you pay 6% on the slice of profit between £12,570 and £50,270. On any profit above £50,270, the rate falls to 2%.
As an example, a person with profits of £30,000 would pay 6% on the £17,430 above £12,570. That comes to about £1,045.80. This is only an illustration of how the bands work, not a forecast for any real person.
Class 2: usually nothing to pay
Class 2 works differently. If your profits are £7,105 or more, GOV.UK says Class 2 is counted as paid, and you do not pay it. This is done to protect your National Insurance record.
If your profits are under £7,105, nothing is due. However, you can choose to pay voluntary Class 2 contributions. For 2026/27 the rate is £3.65 a week.
Why the record matters
National Insurance years count towards the State Pension. GOV.UK says you need 10 qualifying years to get any new State Pension, and 35 qualifying years for the full rate if your record began after April 2016. Some people need more than 35 if they were contracted out before 2016.
- Many people with low profits look at whether paying voluntary Class 2 would fill a gap.
- Some groups, such as certain landlords, may not have Class 2 treated as paid, and may also look at voluntary payments.
- Your State Pension forecast shows what your own record looks like.
How and when it is paid
Most people pay Class 2 and Class 4 through Self Assessment. You must register with HMRC when you become self-employed. The tax is worked out from your tax return, so it is usually paid at the same time as your Income Tax. If you do not use Self Assessment, voluntary Class 2 can be paid separately.
Deadlines for returns and payments are covered in our Self Assessment guide, and are set by HMRC.
Which parts of the UK
The National Insurance rates above apply across the UK. Income Tax bands differ in Scotland, but Class 4 does not change there.
Check before you act
Rates, limits and rules change, often at the start of a tax year. It is worth confirming every figure on the official pages linked below before relying on it, and asking HMRC or a free adviser such as MoneyHelper if your situation is unclear.
Sources
For information only. See our disclaimer and editorial standards. Spotted an error? Tell us.
