You usually pay 2 types of National Insurance if you are self-employed:
- Class 2 if your profits are £6,365 or more a year
- Class 4 if your profits are £8,632 or more a year
You work out your profits by deducting your expenses (external link) from your self-employed income.
How Much you Pay
Class | Rate for tax year 2019 to 2020 |
---|---|
Class 2 | £3 a week |
Class 4 | 9% on profits between £8,632 and £50,000 2% on profits over £50,000 |
You can see National Insurance rates for past tax years (external link).
How to Pay
Most people pay Class 2 and Class 4 National Insurance through Self Assessment (external link).
You must tell HM Revenue and Customs (HMRC) when you become self-employed as a sole trader (external link) or partnership (external link).
Special Rules for Specific Jobs
Some self-employed people do not pay National Insurance through Self Assessment, but may want to pay voluntary contributions (external link). These are:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who do not 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