Answers · UK 2025/26
Do I pay National Insurance as a sole trader?
Yes. Sole traders pay Class 4 NI at 6% on profits between £12,570 and £50,270, plus 2% on profits above £50,270, for 2025/26. Class 2 NI (previously £3.45/week) was effectively abolished from April 2024 but still credits you towards State Pension if profits exceed the small profits threshold.
Full answer
Self-employed NI for 2025/26 works as follows. Class 4: 6% on annual profits between the Lower Profits Limit (£12,570) and the Upper Profits Limit (£50,270); 2% on profits above £50,270. Class 2: technically still in legislation at £3.50/week, but is no longer mandatorily payable for those with profits above the Small Profits Threshold (£6,845) — you receive the National Insurance credit automatically. If your profits are below £6,845 you can choose to pay Class 2 voluntarily to protect State Pension entitlement (cheaper than Class 3 at £17.75/week). Example: sole trader with £30,000 profit — Class 4 = 6% × (£30,000 − £12,570) = £1,046. Self-employed NI is calculated through your Self Assessment return and paid in two instalments on 31 January and 31 July (payments on account) plus a balancing payment on 31 January following the tax year end.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.