Self-employed: how to pay National Insurance
While full-time employees have their income tax and National Insurance contributions (NI) paid through their employers (called the PAYE system), as a self-employed you have to calculate and pay them yourself.
Here is how you do it.
If you pay self-employed National Insurance through Self Assessment
Most self-employed people pay NI as part of their Self Assessment tax bill.
You need to pay 2 types of National Insurance:
|Contribution||Profits from self-employment||How much you pay|
|No contribution||under £6,475||£0|
|Class 2||over £6,475||£3.05 each week|
|Class 4||between £9,501 and £50,000||9%|
|Class 4||over £50,000||2%|
For example, if you earn £60,000 from self-employment, you pay:
- £3.05 each week
- plus 9% of £40,499 (£50,000 – £9,501) = £3,645
- plus another 2% of £10,000 (£60,000 – £50,000) = £200
- total NI contributions: £4,079.
If you don’t pay NI through Self Assessment
You don’t pay self-employed National Insurance through Self Assessment if you’re:
You can still make voluntary Class 2 National Insurance payments – for example to make sure you get the full State Pension or to cover gaps in your National Insurance record.
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