Self-Employed National Insurance Rates

Self-Employed National Insurance Rates

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 from your self-employed income.

How Much you Pay

ClassRate 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
 

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 do not 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 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

For Further Information: