What is the Class 4 National Insurance rate for self-employed people in 2026/27?

Full answer

Class 4 National Insurance for the Self-Employed in 2026/27 Self-employed individuals in the UK pay Class 4 National Insurance contributions based on their annual taxable profits. For 2026/27 the rates are as follows: - 6% on profits between GBP 12,570 (the Lower Profits Limit) and GBP 50,270 (the Upper Profits Limit) - 2% on profits above GBP 50,270 Class 2 NI Abolished From April 2024, Class 2 National Insurance (the flat weekly contribution previously paid by the self-employed) was abolished. Class 4 now serves as the primary NI contribution for self-employed people. Those with profits below GBP 12,570 do not pay Class 4 NI, but they may still wish to make voluntary Class 3 contributions to protect their State Pension entitlement if they have gaps in their National Insurance record. How Class 4 is Collected Class 4 NI is calculated and collected annually through Self Assessment, alongside Income Tax. It is not deducted at source. You will pay both together when you settle your Self Assessment tax bill, with payments on account due in January and July each year. Comparing Self-Employed vs Employed NI Employees pay NI at 8% on earnings between GBP 12,570 and GBP 50,270, and 2% above that. The self-employed rate of 6% in the main band is therefore lower, partly reflecting that self-employed workers receive fewer contributory benefits such as Statutory Sick Pay. Example Calculation If your self-employed profits are GBP 40,000 in 2026/27, your Class 4 NI bill is: (GBP 40,000 -- GBP 12,570) x 6% = GBP 27,430 x 6% = GBP 1,645.80. You would also owe Income Tax on the same profits at 20% above your Personal Allowance of GBP 12,570. Always verify your final figures through HMRC's Self Assessment calculator or a qualified accountant, as allowable business expenses reduce your taxable profits before NI is applied.

Try the calculator