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Self-employed: how to pay National Insurance

  • 1 min read
  • Last updated 16 Jan 2024

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:

Class 2

ContributionProfits from self-employmentHow much you pay
Class 2> £6,725Flat rate of £3.45 a week

🚨From 6 April 2024 (the 24/25 tax year onwards), Class 2 National Insurance is being scrapped. If you’re under the threshold and pay them voluntarily to qualify for benefits, you’ll still be able to do so.

Class 4

ContributionProfits from self-employmentHow much you pay
Class 4£12,570 – £50,2709% (8% from 6 April 2024)
Class 4over £50,2712%

Check out our National Insurance calculator

Your situation

Outlined number oneImage of an arrow
Self-employed income
Self-employed expenses
?
How did you make money?

Tax and profit

Outlined number two
  • Total earnings
    £49,000
    £1,000 tax-free Trading Allowance
    ?
  • NI contributions
    £3,795
    Class 2 NI: £164
    Class 4 NI: £3,632
  • Income tax
    £7,086
  • What you’re left with
    £38,119

How your National Insurance contributions are calculated

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.

National Insurance breakdown

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.

If you don’t pay NI through Self Assessment

You don’t pay self-employed National Insurance through Self Assessment if you’re:

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