How much Class 4 National Insurance do I pay on £80,000 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% on profits above £50,270. On £80,000 of profit, the 6% band applies to £37,700 (£12,570 to £50,270), giving £2,262, and the 2% band applies to £29,730 (£50,270 to £80,000), giving £594.60, for a total Class 4 NI bill of £2,856.60. Notice how the marginal NI rate drops sharply from 6% to 2% once profit crosses £50,270 -- this is the mirror image of employee National Insurance, which similarly drops from 8% to 2% at the same upper threshold. You also pay Income Tax on the same profit: taxable profit of £67,430 splits into £37,700 at 20% (£7,540) and £29,730 at 40% (£11,892), giving £19,432 of Income Tax. Combined Income Tax and Class 4 NI on £80,000 profit is therefore about £22,288.60, leaving roughly £57,711.40. At this profit level, many self-employed people consider incorporating as a limited company, since the combination of a modest salary and dividends can sometimes be more tax-efficient than sole trader profits, though this depends on individual circumstances. Use the Self-Employed Tax calculator to combine Income Tax and Class 4 NI for your profit.

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