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When you’re self-employed, you have to pay your National Insurance contributions yourself in your annual Self Assessment, together with any income tax you might owe.
You pay no NI contributions on the first £12,570 that you make.
You will need to pay Class 2 NI worth £164.
You will also have to pay £3,632 (9%) on your income between £12,570 and £48,000.
National Insurance is a tax that we all have to pay in the UK to be entitled to claim certain state provided benefits. You have to pay it whether you’re employed or self-employed – although the type (or class) that you pay is determined by your employment status.
Here are some of the benefits that you’re entitled to as a result of paying National Insurance:
Well, of course, you could just use our National Insurance calculator above to see exactly what you’ll end up paying, but if you’d like a breakdown of the rates, check out the table below.
| NI class | Who pays | How is it paid | How much is it |
| Class 1 | Employees earning more than £183 per week who are under State Pension age a year | Your employer deducts it through PAYE | 12% (or 2% if you earn over £262 a week) |
| Class 1A or 1B | Employers for employees earning over £190 per week | Your employer pays it on top of your Class 1 | 14.53% |
| Class 2 | Self-employed people earning over £6,725 a year | Through a Self Assessment tax return | Flat £3.45 per week |
| Class 3 | Voluntary contributions – you can pay them to fill gaps in your NI record | Through a Direct Debit | £17.45 per week |
| Class 4 | Self-employed people earning over £12,570 a year | Through a Self Assessment tax return | 9% (or 2% if you earn over £50,270) |
Well, let’s say 2022 was a weird year. After four chancellors, three prime ministers and numerous mini and maxi financial budgets, the National Insurance rate changed quite a lot of times. As a result, your calculation isn’t as straightforward as it is in more stable tax years. Take a look at our blog on the 2022 budget to see what happened.
Yes – class 2 if you’re self-employed and earn more than £6,725. From April 2023, you won’t pay Class 1 or 4 National Insurance if you earn less than the Personal Allowance.
When you earn less than £12,570 in a tax year, you’re exempt from paying Income Tax. The first £12,570 of your income is known as the Personal Allowance. You don’t pay Income Tax on it unless you earn over £100,000, at which point you start to lose your eligibility to it.
The table above shows you how much National Insurance you’ll owe based on your earnings.
Calculating your tax is one thing, but there’s nothing like speaking to a real, human expert, right? That’s why we offer a pay-as-you-go tax accountant service. Get your tax return filed, a one-off tax advice consultation plus online support from an accredited accountant. Just £229, all in.
Or see our Guides, Calculators or Taxopedia
Now that you know everything there is to know about how to calculate National Insurance contributions, you’re ready for more. (Hurray!) These are our top three most read articles when it comes to tax basics like National Insurance. Next: self-employed expenses. Check out our Mileage tax calculator to see what you could deduct for work travel.
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