How much Class 4 National Insurance do I pay on £40,000 self-employed profit in 2026/27?

Full answer

Self-employed people pay Class 4 National Insurance on their profits for 2026/27 at 6% on profits between the lower profits limit of £12,570 and the upper profits limit of £50,270, then 2% above £50,270. On £40,000 of profit, the whole £27,430 above £12,570 falls in the 6% band, since £40,000 is below £50,270: £27,430 x 6% = £1,645.80. Class 2 National Insurance has been abolished as a mandatory charge but is treated as paid for benefit and State Pension purposes above the Small Profits Threshold; voluntary Class 2 at £3.65 a week remains available for those below it who want to protect their record. You also pay Income Tax on the same profit: with a £12,570 Personal Allowance, £27,430 is taxed at the 20% basic rate, giving £5,486 of Income Tax. So on £40,000 profit your combined Income Tax and Class 4 NI is roughly £7,131.80, leaving about £32,868.20. Payments are made through Self Assessment, typically with payments on account due in January and July towards the following year's liability, which can create a cash-flow surprise for newly self-employed people in their second year of trading. Use the Self-Employed Tax calculator to combine Income Tax and Class 4 NI for your profit.

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More answers

• How much Class 4 National Insurance do I pay on £30,000 self-employed profit in 2026/27?
• How much Class 4 National Insurance do I pay on £50,000 self-employed profit in 2026/27?