If you’re self-employed or run your own business, you need to understand how to pay National Insurance tax to HMRC. While employed people automatically pay this type of tax before their salary reaches their bank account, the self-employed need to save for National Insurance and then pay it as part of their tax bill once a year.

Understanding National Insurance contributions

Self-employed National Insurance is paid through Self Assessment. You don’t have to pay anything if your annual trading profits are less than £12,570.

National Insurance qualifies you for benefits, including your state pension and certain support allowances. It’s also used to fund public services, such as the NHS, welfare, and education.

Self-employed National Insurance is paid through your Self Assessment tax return. You’ll usually pay Class 4 on your annual profits, and you can pay – or choose to pay – Class 2 to build your state pension record.

HMRC collects these alongside your income tax bill, typically due by 31 January. You can pay online by debit card, bank transfer, Direct Debit, or through your HMRC account. Always check HMRC for the latest thresholds and rates before you file.

Self-employed National Insurance rates and thresholds 2026-27
How to pay National Insurance to HMRC
When do you stop paying National Insurance?
Making voluntary National Insurance self-employed contributions
How can I get a National Insurance refund?
What National Insurance contributions do employers make?
FAQs

Self-employed National Insurance rates and thresholds 2026-27

Paying National Insurance is mandatory for anyone over 16 who’s:

self-employed with an annual profit of more than £12,570
employed and earns more than £242 a week

If you don’t meet these criteria, it’s unlikely you’ll need to pay National Insurance – but you may still benefit from things like the state pension if you make voluntary contributions.

If you earn between £7,105 and £12,569, then your state pension will automatically be protected even though you aren’t paying Class 2 contributions.

Overview

Tax class	Profit threshold	Rate 2026-27	Impact on state pension
Class 4 National Insurance (lower profits limit)	£12,570	6% (unchanged)	None
Class 4 National Insurance (upper profits limit)	£50,270	2% (unchanged)	None
Class 2 National Insurance	£7,105	£3.65 a week	You need to contribute for 10 years to get the state pension at all. Regular contributions increase the amount you receive when you reach retirement age.

Class 4 National Insurance explained

Class 4 National Insurance is a tax based on your taxable trading profits, but it doesn’t contribute to your state pension or other benefits.

It’s a percentage of your annual profits above set thresholds.

Class 2 National Insurance overview

As of April 2024, Class 2 National Insurance contributions are no longer mandatory. However, the self-employed can still make voluntary payments. And doing so means you’ll continue to get full access to entitlements such as state pension, maternity allowance, and benefits.

Class 2 National Insurance contributions are a flat weekly amount that may be voluntary depending on your profits, used to protect your National Insurance record.

The 2026-27 Class 2 National Insurance rate is fixed at £3.65 a week.

Class 2 National Insurance at parental benefits

Your ability to access maternity allowance when taking time off to have a baby is directly linked to how many Class 2 National Insurance contributions you’ve made.

Small profits threshold: If you make less than £7,105 a year, you don’t owe anything, but you must take active steps if you want that year to count toward your state retirement pension.

Calculating National Insurance

National Insurance is broken down into different ‘classes’. The class you pay depends on your employment status:

Class 1 – employees earning more than £242 a week and under the state pension age pay Class 1 contributions, which are deducted by the employer (you’ll also pay this if you’re both self-employed and employed)
Secondary Class 1 – if you employ people, you pay secondary Class 1 contributions on your employees’ earnings
Class 2 and Class 4 – self-employed people pay National Insurance in these two classes (Class 2 NICs were made voluntary for the self-employed in April 2024)
Class 3 – this is another voluntary National Insurance you can use to fill any gaps in your contributions so you can qualify for a state pension

Class 4 contributions are calculated automatically when you complete your Self Assessment with your trading profits for the year.

How to pay National Insurance to HMRC

Register as self-employed and get your UTR.
Complete your Self Assessment tax return (along with quarterly updates if you’re signed up to Making Tax Digital).
HMRC calculates Class 4 automatically from your profits.
Add Class 2 if required or if you choose to pay it voluntarily to protect your record.
Pay your final tax bill (including National Insurance and income tax) to HMRC by 31 January, and make payments on account if applicable.

The process changes for some people

Some self-employed people might pay National Insurance differently:

you won’t pay NICs if you’re under 16, or over the state pension age (unless you pay Class 4 NICs, which you stop paying at the end of the tax year in which you reach state pension age)
you won’t have to pay Class 2 NICs if you’re a married woman who opted into the Reduced Rate scheme before it ended in April 1977
separate rules apply to share fishermen and volunteer development workers

Voluntary contributions (not through Self Assessment)

Some self-employed people don’t pay National Insurance contributions through Self Assessment, but they may choose to make voluntary contributions. These workers include:

examiners, moderators, and invigilators
religious ministers, providing that they receive no salary or stipend
people who make investments, but without receiving a commission or fee, and not as a business
some people whose business involves land or property

Set aside money for your tax bill

Knowing how to pay National Insurance is one thing, but making sure you’ve saved enough of your income from self-employment to pay your tax bill is another. We spoke to a chartered accountant for his tips on saving for tax, from saving a percentage each month to regularly estimating how much you’re likely to owe at the end of the tax year.

For example, this is how you could portion out your self-employed income to make sure you’re saving enough:

Tax (including National Insurance): 20% to 30%
Pension/retirement: 10% to 15%
Business expenses, running costs, and a safety net: 10% to 15%
Rainy day pot (e.g if you get sick): 5%
The remainder (your take home pay): 40% to 50%

You can use your business bank account to automatically create savings pots to help you portion out your income before you spend it.

Making Tax Digital (the government’s new quarterly tax reporting scheme) is a requirement for anyone with a qualifying income over £50,000 – and can help with tracking your tax liabilities as you go. Read more in our expert tax guide and learn the steps to getting Making Tax Digital up and running.

Pro tip: Save extra if you’re in the first year of self-employment as you’ll owe 50% of the next year’s tax bill as well as the previous year. This is called payment on account.

What is Class 2 National Insurance?

As mentioned above, the self-employed no longer need to pay Class 2 NICs, but can make voluntary payments. They’ll continue to get full access to entitlements such as state pension and credits.

Class 2 National Insurance contributions are fixed at £3.45 a week.

When do you stop paying National Insurance?

Whether employed or self-employed, most people stop paying NICs when they reach the state pension age. Check the government’s state pension age calculator to see the earliest date you can receive your state pension.

Making voluntary National Insurance self-employed contributions

You can choose to make voluntary National Insurance contributions. You might do this if there are gaps in your National Insurance record that could affect your entitlement to the state pension, or if you had small profits during periods of self-employment.

If you’re concerned that there may be gaps in your National Insurance record, you can use the government’s National Insurance record check to find out where you stand. You can then check whether you’re eligible to make voluntary contributions.

How can I get a National Insurance refund?

If you think you’ve overpaid your National Insurance or shouldn’t have paid it at all, you can claim a refund from HMRC.

Self-employed people are more likely to overpay National Insurance because their employment circumstances are more complicated than employed people paid through Pay As You Earn (PAYE).

HMRC doesn’t check the accuracy of the NICs you make, so it’s important for you to check that you’re not overpaying and apply for a refund if you’re due one.

For example, a self-employed person could be overpaying NICs if their profits were under the small profits threshold or if they have several jobs, meaning they’re employed and self-employed at the same time.

When you request a National Insurance tax refund, you’ll be asked which class of NICs you want refunded (Class 1, Class 2, Class 3, or Class 4).

You can work out what NICs you need to pay and what you could be owed by using a National Insurance refund calculator.

Claiming a Class 2 refund

If you want to claim a refund for Class 2 contributions that you don’t think you should have paid, you’ll need to fill out a CA8480 form.

If you think you’ve paid too much Class 2 National Insurance, you’ll need to write to HMRC with:

a copy of your earnings
your National Insurance number
why you think you’ve overpaid
the tax year you’re claiming for

Claiming a Class 4 refund

If you want a repayment of Class 4 contributions that you don’t think you should have paid, you’ll need to contact the Self Assessment Helpline within five years of the tax year you want a refund for.

If you think you’ve paid too much Class 4 National Insurance, you’ll need to fill out a CA5610 form from 1 February in the tax year after the one you’re claiming for.

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What National Insurance contributions do employers make?

On behalf of your employees, you deduct National Insurance from their pay on earnings based on these thresholds (updated for the 2026-27 tax year):

Threshold	Monthly threshold	Weekly threshold	2026-27 tax rate
Primary	£1,048	£242	8%
Upper earnings limit	£4,189	£967	2%

These are your employees’ Class 1 National Insurance contributions.

How much National Insurance your employees have to pay is worked out by the category letter assigned to their National Insurance number. Find out more about category letters on the government website.

Employers also pay contributions towards their employees’ National Insurance (these are known as secondary contributions).

For the 2026-27 tax year, the rate is 15%, with a secondary threshold of £5,000 a year.

Read our detailed guide on employer National Insurance for more information.

Make sure you claim the employment allowance, which reduces your annual National Insurance liability by £5,000 a year. As of April 2026, the employment allowance is £10,500.

FAQs – common questions on National Insurance

Do I pay National Insurance if I have a full-time job and a side business?

Yes, you’ll pay Class 1 National Insurance through your employer for your full-time job. If your side business profits exceed £12,570 in a tax year, you’ll also pay Class 4 National Insurance through your Self Assessment. These are calculated separately.

What happens to my state pension if my profits drop below the threshold?

If your profits fall below £12,570, you won’t pay Class 4 National Insurance. However, you can choose to pay voluntary Class 2 contributions to protect your state pension and make sure you don’t have gaps in your National Insurance record.

Can I pay my self-employed National Insurance monthly?

No, self-employed National Insurance contributions are typically paid annually along with your Self Assessment tax bill. However, you can set up a Budget Payment Plan with HMRC to make regular payments throughout the year to cover your tax and National Insurance.

Do I pay National Insurance if I’m self‑employed?

Usually, yes (unless your trading profits are less than £12,570). You’ll typically pay Class 4 on profits, and you may pay or choose to pay Class 2 to protect your National Insurance record.

Is Class 2 National Insurance compulsory?

It depends on your profits and the tax year’s rules. If it isn’t required, you might still pay it voluntarily to protect your state pension record.

How do I pay Class 2 and Class 4 National Insurance?

You pay Class 2 and Class 4 National Insurance through your Self Assessment tax return. HMRC includes these in your total bill, which you pay by 31 January.

What if I miss the 31 January deadline?

HMRC can charge late filing penalties and interest. Pay as soon as possible and contact HMRC if you’re struggling.

Can I spread the cost?

You may be able to set up a Time to Pay arrangement with HMRC if you meet their criteria.

How do payments on account affect my National Insurance?

Payments on account go towards your combined Self Assessment bill, which can include Class 4 and any Class 2 due.

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How to pay self-employed National Insurance (2026-27 rates)