Answers · UK 2025/26

How much Class 4 National Insurance do self-employed people pay in 2026/27?

Self-employed workers pay Class 4 National Insurance at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270, in 2026/27. It is calculated and paid through Self Assessment alongside Income Tax, based on annual trading profits rather than weekly or monthly earnings.

Last updated: 2 July 2026Last reviewed: 2 July 2026How we verify

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Class 4 National Insurance applies to self-employed sole traders and partners whose trading profits exceed the £12,570 Lower Profits Limit for the 2026/27 tax year. **The rates** Profits between £12,570 (the Lower Profits Limit) and £50,270 (the Upper Profits Limit) are charged at 6%, while any profit above £50,270 is charged at 2% -- broadly mirroring the structure of employee Class 1 National Insurance, though at lower rates and calculated annually rather than per pay period. **Class 2 context** Class 2 National Insurance was effectively abolished for most self-employed people from April 2024 -- if your profits are at or above the Small Profits Threshold (£7,105 for 2026/27), you are treated as having paid Class 2 for state pension and benefit purposes without actually paying it, though you can still choose to pay voluntary Class 2 (£3.65/week) if your profits are below that threshold and you want to protect your National Insurance record. **Worked example -- £40,000 profit** Profits above £12,570: £40,000 − £12,570 = £27,430 × 6% = £1,645.80 Class 4 NI. Combined with Income Tax at 20% on the basic rate band, this is on top of, not instead of, Income Tax. **Worked example -- £70,000 profit** Band 1: £50,270 − £12,570 = £37,700 × 6% = £2,262. Band 2: £70,000 − £50,270 = £19,730 × 2% = £394.60. Total Class 4 NI: £2,656.60. **How and when it's paid** Class 4 NI is calculated on your Self Assessment tax return and paid alongside Income Tax by the 31 January deadline following the tax year, with payments on account often required in advance for the following year if your bill exceeds £1,000. **Who is exempt** You do not pay Class 4 NI if you are over State Pension age at the start of the tax year, or in certain other limited circumstances such as being a diver or divers' supporter with specific exemption certificates. **Practical tip** Use the Self-Employed Tax calculator to estimate your combined Income Tax and Class 4 NI liability together, since both are calculated on the same trading profit figure and budgeting for the combined total avoids an unwelcome surprise at the January payment deadline.