What is the Class 4 National Insurance rate for 2026/27?

Full answer

Class 4 National Insurance is paid by self-employed people on their trading profits. For the 2026/27 tax year (6 April 2026 to 5 April 2027), the main rate is 6% charged on profits between the Lower Profits Limit of GBP 12,570 and the Upper Profits Limit of GBP 50,270. Above GBP 50,270 the rate drops to 2% with no upper cap. Profits below GBP 12,570 attract no Class 4 NI at all. Class 4 is assessed on your net profit (income minus allowable expenses), not turnover, and is calculated through Self Assessment alongside your Income Tax. It is separate from Class 2 NI, which for 2026/27 is voluntary at GBP 3.65 per week for those below the Small Profits Threshold of GBP 7,105 who want to protect their State Pension and benefit entitlement. Worked example: a sole trader with GBP 60,000 of profit pays Class 4 on the band between GBP 12,570 and GBP 50,270. That band is GBP 37,700, taxed at 6% = GBP 2,262. The remaining GBP 9,730 above GBP 50,270 is taxed at 2% = GBP 194.60. Total Class 4 NI = GBP 2,456.60. On top of this they pay Income Tax (20% basic, 40% higher) on the same profits, and the figures are settled together via their tax return. Who this affects: sole traders and partners in a partnership. Company directors paying themselves through PAYE pay Class 1 NI instead, and limited companies are outside Class 4 entirely. If your only self-employment is below the trading allowance of GBP 1,000, you generally have nothing to declare and no Class 4 to pay. The 6%/2% structure is unchanged in headline rate, but remember the thresholds remain frozen at GBP 12,570 and GBP 50,270. Use a self-employed tax calculator to combine Class 4 NI with your Income Tax and Class 2 position for an accurate payment-on-account estimate.

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