Most self-employed individuals are required to pay Class 4 National Insurance Contributions (NICs) through the Self Assessment system.
For the 2026/27 tax year, Class 4 NICs become payable where taxable self- employed profits are £12,570 or more per annum.
The current Class 4 NIC rates are:
- 6% on profits between £12,570 and £50,270; and
- 2% on profits above £50,270.
However, certain categories of individuals are exempt from paying Class 4 NICs, including:
- Individuals under age 16 at the beginning of the tax year;
- Individuals who have reached State Pension age before the start of the tax year (note that reaching State Pension age during the tax year does not remove liability for that year); and
- Individuals receiving profits solely in their capacity as a trustee, executor, or administrator under the relevant tax legislation.
From 6 April 2024, the mandatory requirement for self-employed individuals to pay Class 2 National Insurance Contributions was abolished.
Despite this change, making voluntary Class 2 NIC contributions may still be beneficial for certain individuals who would not otherwise build National Insurance credits through Self Assessment. Voluntary Class 2 contributions can help preserve entitlement to contributory benefits, including the State Pension.
Before making voluntary contributions, it is important to confirm that doing so would provide a genuine benefit based on the individual’s National Insurance record and future entitlement position.
For the 2026/27 tax year, the voluntary Class 2 NIC rate is £3.65 per week.
Most self-employed individuals continue to settle National Insurance liabilities through the Self Assessment process. However, certain categories of self-employed workers — for example examiners, moderators, invigilators, and ministers of religion who do not receive employment income — may not automatically pay National Insurance through Self Assessment and may wish to consider voluntary contributions where appropriate.
