---
title: "Class 2 & Class 4 National Insurance 2026/27: A Guide for the Self-Employed"
description: "For self-employed individuals, understanding your National Insurance obligations is a fundamental part of tax compliance. Following significant reforms, the system for 2026/27 simplifies contributions, with Class 4 NICs being the primary profit-based charge and Class 2 NICs serving mainly to…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/class-2-class-4-national-insurance/"
updated: "2026-08-12"
category: Self Employed Tax
---

# Class 2 & Class 4 National Insurance 2026/27: A Guide for the Self-Employed

For self-employed individuals, understanding your National Insurance obligations is a fundamental part of tax compliance. Following significant reforms, the system for 2026/27 simplifies contributions, with Class 4 NICs being the primary profit-based charge and Class 2 NICs serving mainly to protect benefit entitlement for lower earners.

These contributions are typically calculated and paid through your annual Self Assessment tax return.

## **Class 4 National Insurance: The Profit-Related Contribution**

Class 4 NICs are the main contributions paid by the self-employed and are calculated as a percentage of your annual [taxable profits](https://www.accountingfirms.co.uk/blog/in-with-the-new-basis-period-rules/). You only pay Class 4 NICs if your profits are above a certain threshold.

For the [tax year](https://www.accountingfirms.co.uk/blog/good-timing-can-save-a-lot-of-tax/) 2026/27 (6 April 2026 to 5 April 2027), the rates and thresholds are as follows:

| Profit Threshold | Class 4 NI Rate |
| --- | --- |
| Profits between £12,570 and £50,270 (Lower and Upper Profits Limit) | 6% |
| Profits above £50,270 | 2% |

This 6% main rate reflects reductions legislated in the Spring Budget 2024, which lowered the rate from 9% to 6% from 6 April 2024. The payment is made on profits immediately derived from your trade, profession, or vocation.

## **Class 2 National Insurance: Protecting Your Benefit Entitlement**

Following reforms which took effect from 6 April 2024, there is no longer a mandatory requirement for self-employed individuals to pay Class 2 NICs. However, the system is designed to protect your [National Insurance record](https://www.accountingfirms.co.uk/blog/what-are-payroll-records/), which is crucial for accessing contributory benefits like the State Pension.

The treatment of Class 2 contributions for 2026/27 depends on your profit level.

### **If Your Profits are £7,105 or More**

If your profits meet or exceed the Small Profits Threshold (SPT) of £7,105, you will receive a [National Insurance](https://www.accountingfirms.co.uk/blog/when-is-the-tax-return-deadline/) credit without making any payment. You are *treated* as having paid Class 2 NICs for the year, which counts as a qualifying year for your [State Pension](https://www.accountingfirms.co.uk/knowledge-bank/your-national-insurance-record/) record.

### **If Your Profits are Less than £7,105**

If your profits are below the SPT, you will not automatically receive a National Insurance credit. To ensure you gain a qualifying year for State Pension purposes, you can choose to make **voluntary Class 2 contributions**.

- The voluntary Class 2 rate for 2026/27 is **£3.65 per week**.

This voluntary payment mechanism ensures that self-employed individuals with low profits can still build up their entitlement to state benefits.

## **Summary of Self-Employed NI Thresholds and Rates for 2026/27**

| Contribution/Threshold | Annual Figure | Rate / Weekly Rate |
| --- | --- | --- |
| **Class 2** Small Profits Threshold (SPT) | £7,105 | N/A (Above this, you are credited automatically) |
| **Class 2** Voluntary Contribution Rate | N/A | £3.65 per week |
| **Class 4** Lower Profits Limit (LPL) | £12,570 | You start paying Class 4 on profits above this |
| **Class 4** Main Rate Band | £12,570 - £50,270 | 6% |
| **Class 4** Upper Rate Threshold (UPL) | £50,270 | 2% on profits above this |

## **How to Pay Class 2 and Class 4 NICs**

For most self-employed people, both Class 4 and any voluntary Class 2 contributions are handled through the [Self Assessment](https://www.accountingfirms.co.uk/blog/balanced-workload-during-tax-season/) system. Your liability will be calculated as part of your [tax return and paid to HMRC](https://www.accountingfirms.co.uk/blog/common-bookkeeping-mistakes-to-avoid/) alongside your Income Tax.

You must notify HMRC when you become self-employed to ensure you are [registered for Self Assessment](https://www.accountingfirms.co.uk/knowledge-bank/registering-for-self-assessment-uk-a-guide/) and National Insurance correctly.

 

*For more detailed guidance on the specifics of self-employed National Insurance, you can refer to HMRC's National Insurance Manual, particularly the sections starting at NIM70000 for Class 2 contributions. For the legislative background to the recent changes, refer to the policy papers published alongside the Autumn Statement 2023 and Spring Budget 2024.*

## Referneces

1. [Changes to National Insurance contributions from 6 January 2024 at 1](https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-january-2024/a-reduction-in-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions-and-the-removal-of-the-requirement-to-pay-class-2-nation#:~:text=HM%20Revenue%20%26%20Customs%20Policy,%C2%A312%2C570%20and%20who%20are%20liable&text=HM%20Revenue%20%26%20Customs%20Policy,fi%20ts%20above&text=paper%20A%20reduction,%C2%A312%2C570%20and%20who%20are%20liable&text=paper%20A%20reduction,fi%20ts%20above)
2. [Changes to National Insurance contributions from 6 April 2024 at 2](https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions#:~:text=copyright%20information%20you%20will%20need,National%20Insurance%20contributions%20by%202&text=copyright%20information%20you%20will%20need,employee%20Class%201&text=to%20obtain%20permission,National%20Insurance%20contributions%20by%202&text=to%20obtain%20permission,employee%20Class%201)
3. [Changes to National Insurance contributions from 6 April 2024 at 5](https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions#:~:text=also%20amends%20section%2015(3ZA)(a)%20of,on%20individuals%2C%20households%20and%20families&text=also%20amends%20section%2015(3ZA)(a)%20of,%20Impact&text=the%20Social%20Security,on%20individuals%2C%20households%20and%20families&text=the%20Social%20Security,%20Impact)
4. [Changes to National Insurance contributions from 6 April 2024 at 3](https://www.gov.uk/government/publications/changes-to-national-insurance-contributions-from-6-april-2024/reduction-to-the-main-rates-of-primary-class-1-and-class-4-national-insurance-contributions#:~:text=6%20April%202024,in%20sections%208(2)(a)%20and%2015(3ZA)(a)&text=6%20April%202024,law%20is%20included&text=self%2Demployed%2C%20taking%20into,in%20sections%208(2)(a)%20and%2015(3ZA)(a)&text=self%2Demployed%2C%20taking%20into,law%20is%20included)
5. [Exemption from Class 2 and 4 National Insurance contributions for COVID-19 Test and Trace Support Payments at 5](https://www.gov.uk/government/publications/exemption-from-class-2-and-4-national-insurance-contributions-for-covid-19-test-and-trace-support-payments/exemption-from-class-2-and-4-national-insurance-contributions-for-covid-19-test-and-trace-support-payments#:~:text=Insurance%20contributions,%E2%80%98Relevant%20pro%20fi%20ts%E2%80%99%20are&text=Insurance%20contributions,National%20Insurance%20contributions&text=1%20and%20Class,%E2%80%98Relevant%20pro%20fi%20ts%E2%80%99%20are&text=1%20and%20Class,National%20Insurance%20contributions)