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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.
Most self-employed people pay NI as part of their Self Assessment tax bill.
You need to pay 2 types of National Insurance in the 2023/24 tax year:
| Contribution | Profits from self-employment | How much you pay |
|---|---|---|
| Class 2 | over £6,725 | £3.45 each week |
| Class 4 | £12,570 – £50,270 | 9% |
| Class 4 | over £50,271 | 2% |
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.
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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