National Insurance for the self-employed

Self-employed earners pay Class 4 National Insurance contributions to the extent that their earnings exceed the lower profits limit. Contributions are payable at the main Class 4 rate on earnings between the lower profits limit and the upper profits limit and at the additional Class 4 rate on earnings in excess of the upper profits limit. The lower profits limit remains at £12,570 for 2026/27 and the upper profits limit remains at £50,270. The main Class 4 rate is unchanged at 6% and the additional Class 4 rate is unchained at 2%.

Self-employed earners with profits between the small profits threshold and the lower profits limit receive a National Insurance credit which provides them with a qualifying year for zero contribution cost. The small profits threshold is increased from £6,845 to £7,105 for 2026/27. Self-employed earners whose profits are below the small profits threshold can opt to pay voluntary Class 2 National Insurance contributions to provide them with a qualifying year. The rate of voluntary Class 2 National Insurance contributions rises from £3.50 per week to £3.65 per week.