Self-Employed National Insurance Rates
You usually pay 2 types of National Insurance if you are self-employed:
- Class 2 if your profits are £6,365 or more a year
- Class 4 if your profits are £8,632 or more a year
You work out your profits by deducting your expenses from your self-employed income.
How Much you Pay
|Class||Rate for tax year 2019 to 2020|
|Class 2||£3 a week|
9% on profits between £8,632 and £50,000
2% on profits over £50,000
You can see National Insurance rates for past tax years.
How to Pay
Most people pay Class 2 and Class 4 National Insurance through Self Assessment.
You must tell HM Revenue and Customs (HMRC) when you become self-employed as a sole trader or partnership.
Special Rules for Specific Jobs
Some self-employed people do not pay National Insurance through Self Assessment, but may want to pay voluntary contributions. These are:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who do not receive a salary or stipend
- people who make investments for themselves or others - but not as a business and without getting a fee or commission