--- title: "Self-Employed National Insurance: 2026/27 Rates and Thresholds" description: "**Updated for 2026/27.** Self-employed people can build National Insurance entitlement through Class 2 credits and may pay Class 4 contributions on profits. Since April 2024, most people no longer pay mandatory Class 2, but the record-protection rules still matter for…" url: "https://www.accountingfirms.co.uk/knowledge-bank/do-i-need-to-pay-national-insurance-contributions-when-self-employed/" updated: "2026-08-12" category: Self Employed --- # Self-Employed National Insurance: 2026/27 Rates and Thresholds **Updated for 2026/27.** Self-employed people can build National Insurance entitlement through Class 2 credits and may pay Class 4 contributions on profits. Since April 2024, most people no longer pay mandatory Class 2, but the record-protection rules still matter for the State Pension and some benefits. ## 2026/27 thresholds and rates - **Profits below £7,105:** no mandatory Class 2 or Class 4; voluntary Class 2 may be available at £3.65 a week - **Profits from £7,105 to £12,570:** Class 2 is treated as paid, protecting the National Insurance record, with no Class 4 due - **Profits over £12,570 to £50,270:** Class 4 is charged at 6% - **Profits over £50,270:** Class 4 is charged at 2% on the excess Thresholds apply to taxable self-employed profits, not turnover. Special rules and annual maxima can apply where you are both employed and self-employed. ## Class 2 contributions and credits If 2026/27 profits are at least £7,105, Class 2 is treated as paid even though no cash charge is normally collected. This can create a qualifying National Insurance year for the State Pension and relevant contributory benefits. Where profits are below £7,105, consider voluntary Class 2 at £3.65 a week if you need to protect the record. Paying is not automatically worthwhile: check existing qualifying years, overseas cover, credits and how many future years remain. ## Class 4 National Insurance Class 4 is a tax-like charge calculated through Self Assessment. It does not by itself create additional State Pension entitlement. For 2026/27 it is 6% on profits between £12,570 and £50,270 and 2% above £50,270. ## Example A sole trader has taxable profit of £40,000 in 2026/27. Class 2 is treated as paid because profit exceeds £7,105. Class 4 is broadly 6% of £27,430—the profit between £12,570 and £40,000—giving £1,645.80 before any special adjustments. ## How profit is calculated Start with self-employed income and deduct allowable business expenses, capital allowances or other permitted adjustments. The trading allowance may be used instead of actual expenses where eligible. Private costs and drawings do not reduce profit. ## Employed and self-employed at the same time An employee can pay Class 1 through payroll and Class 4 on self-employed profit. Annual maximum rules may limit the combined amount in some cases, and HMRC's Self Assessment calculation should consider the relevant information. Keep P60/P45 records and complete the employment and self-employment sections accurately. ## Multiple self-employed trades Where you operate more than one trade, profit may need to be considered under aggregation rules for National Insurance. Do not simply apply the thresholds separately to every activity. Partnership shares and special occupations can require separate treatment. ## How contributions are paid Class 4 is normally calculated through the Self Assessment return and paid with Income Tax on 31 January, with payments on account where applicable. Voluntary Class 2 is normally elected and paid through the applicable HMRC process. Check the calculation before the filing deadline. ## State Pension impact A qualifying year can arise through treated-as-paid or voluntary Class 2, Class 1 earnings, National Insurance credits or a combination. The new State Pension normally requires at least 10 qualifying years for any entitlement and often 35 for the full rate, but people with pre-April 2016 records can need a personalised calculation. ## Check your National Insurance record 1. Use the official State Pension forecast and NI record services. 2. Identify incomplete years and the deadline for filling each gap. 3. Confirm whether a payment would increase the forecast. 4. Compare voluntary Class 2 with Class 3 where both are possible. 5. Contact the Future Pension Centre or HMRC where the record is unclear. Do not pay historic gaps solely because they appear incomplete; some payments do not improve entitlement. ## Maternity Allowance and other benefits Class 2 status can affect Maternity Allowance and certain contributory benefits. Low-profit self-employed people planning a claim should obtain advice before the relevant period ends. Universal Credit follows separate earnings and reporting rules. ## Starting or stopping self-employment Register for Self Assessment where required and provide the correct start date. When the trade ends, report the cessation date and final profit. Stopping self-employment can end Class 2 treatment, so review future NI credits and voluntary options. ## Common mistakes - Using turnover instead of profit - Assuming Class 4 builds the State Pension - Paying voluntary contributions without checking the forecast - Ignoring Class 1 paid through employment - Applying thresholds separately to connected trades without checking aggregation - Missing the cessation date or low-profit election Use HMRC's official [self-employed National Insurance rates](https://www.gov.uk/self-employed-national-insurance-rates) and [National Insurance record service](https://www.gov.uk/check-national-insurance-record). Our [self-employment and State Pension guide](https://www.accountingfirms.co.uk/knowledge-bank/how-does-self-employment-affect-my-state-pension/) explains qualifying years in more depth. ## Frequently asked questions ### Do I still pay Class 2 automatically? Usually no. It is treated as paid above £7,105; below that level you may consider voluntary Class 2. ### Does Class 4 increase my pension? No. Pension entitlement is normally protected through Class 2 treatment, Class 1 or credits. ### Are the rates the same across the UK? National Insurance rates are UK-wide, although Income Tax rates can differ in Scotland. *This guide is general information. Check your personal record before paying voluntary contributions.*