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:
- living overseas
- or a non-UK resident who’s self-employed in the UK.
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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