---
title: How Much Class 4 National Insurance Do You Pay in 2026/27?
description: "For the 2026/27 tax year, self-employed individuals pay Class 4 National Insurance Contributions (NICs) based on their annual taxable profits. The amount you pay to HM Revenue & Customs (HMRC) is calculated using a two-tier rate structure based on two…"
url: "https://www.accountingfirms.co.uk/knowledge-bank/how-much-class-4-national-insurance-do-you-pay/"
updated: "2026-08-11"
category: Self Employed Tax
---

# How Much Class 4 National Insurance Do You Pay in 2026/27?

For the 2026/27 tax year, self-employed individuals pay Class 4 National Insurance Contributions (NICs) based on their annual taxable profits. The amount you pay to HM Revenue & Customs (HMRC) is calculated using a two-tier rate structure based on two key thresholds: the Lower Profits Limit (LPL) and the Upper Profits Limit (UPL).

Under section 15 of the Social Security Contributions and Benefits Act 1992, Class 4 NICs are payable on all profits immediately derived from the carrying on or exercise of one or more trades, professions, or vocations chargeable to income tax.

## The 2026/27 Class 4 NIC Rates and Thresholds

| Threshold / Limit | 2026/27 Amount | Class 4 NIC Rate |
| --- | --- | --- |
| **Below the Lower Profits Limit (LPL)** | Profits up to £12,570 | **0%** |
| **Main Rate Band** | Profits between £12,570 and £50,270 | **6%** |
| **Additional Rate Band (Excess Profits)** | Profits above £50,270 | **2%** |

These rates reflect the structural reductions to self-employed National Insurance introduced in recent years.

## How to Calculate Your Class 4 Liability

HMRC assesses your Class 4 National Insurance liability annually via your [Self Assessment tax return](https://www.accountingfirms.co.uk/knowledge-bank/what-should-i-do-if-ive-stopped-being-self-employed/).  The calculation follows a strict statutory method, separating your profits into the two bands.

> "From 6 April 2024... Step 1: Multiply the amount of profits between the Lower Profits Limit and the Upper Profits Limit by the main Class 4 NICs percentage rate. Step 2: Multiply the amount of profits that exceed the Upper Profits Limit by the additional Class 4 NICs percentage rate. Step 3: Add together the results of steps 1 and 2."

### Example Calculation

If a self-employed professional generates £60,000 in taxable trading profits during the 2026/27 tax year, the calculation operates as follows:

1. **Test the Main Rate Band:** The profits between the LPL (£12,570) and UPL (£50,270) total £37,700.
   - £37,700 × 6% = **£2,262.00**
2. **Test the Additional Rate Band:** The profits exceeding the UPL (£50,270) total £9,730.
   - £9,730 × 2% = **£194.60**
3. **Aggregate the Liability:** Add Step 1 and Step 2.
   - £2,262.00 + £194.60 = **£2,456.60** total Class 4 NICs payable for the year.

## What about Class 2 National Insurance?

Historically, self-employed earners paid a flat-rate Class 2 National Insurance alongside Class 4. However, the mandatory payment of Class 2 NICs has been abolished for those with profits above a certain level.

For the [2026/27 tax year](https://www.accountingfirms.co.uk/blog/good-timing-can-save-a-lot-of-tax/), the interplay between your profits and Class 2 operates under the Small Profits Threshold (SPT), which is set at **£7,105**.

- **Profits of £7,105 or more:** You do not have to pay Class 2 contributions. HMRC treats your Class 2 NICs as having been paid automatically, ensuring your [National Insurance](https://www.accountingfirms.co.uk/blog/what-are-payroll-records/) record (for the State Pension and other benefits) is protected.
- **Profits below £7,105:** You are not required to pay any National Insurance, but you may choose to make voluntary Class 2 payments at a rate of **£3.65 per week** to preserve your qualifying years for the State Pension.

Consequently, a self-employed earner with profits above £12,570 will face a Class 4 liability (calculated above) but a £nil Class 2 liability, while still receiving the state benefit protections of the National Insurance system.

## Exceptions for Specific Roles

Most self-employed individuals report and pay these amounts concurrently with their [income tax](https://www.accountingfirms.co.uk/blog/hmrc-payment-niers/) via Self Assessment.  However, special rules apply to certain roles. For example, if you operate as an examiner, moderator, invigilator, or set exam questions, you cannot pay your Class 4 NICs through standard Self Assessment. Instead, you are liable for "Special Class 4 National Insurance" and must arrange payment directly with the National Insurance office.

 

*For completeness, consider reviewing the interplay between Class 4 NICs and any concurrent employment (Class 1 NICs), as an annual maximum contribution liability applies where a taxpayer is both employed and self-employed during the same tax year.*