Class 2 & Class 4 National Insurance 2026/27
Self-employed individuals pay different National Insurance to employees. Here's how it works in 2026/27.
2026/27 Rates Summary
| Class | Rate | Threshold |
|---|---|---|
| Class 2 | Abolished | N/A |
| Class 4 (main) | 6% | £12,570 - £50,270 |
| Class 4 (upper) | 2% | Above £50,270 |
Class 2 NI (Abolished)
From April 2024, Class 2 NI was abolished. Self-employed people:
- No longer pay the weekly flat rate (was £3.45/week)
- Still receive NI credits if profits above £6,725
- Can pay voluntary Class 2 if below threshold to protect State Pension
Class 4 NI Calculation
Class 4 NI is paid on self-employed profits:
Example: £50,000 profit
| Profit Band | Amount | Rate | NI |
|---|---|---|---|
| £0 - £12,570 | £12,570 | 0% | £0 |
| £12,571 - £50,000 | £37,430 | 6% | £2,246 |
| Total Class 4 | £2,246 |
Comparison: Employee vs Self-Employed NI
On the same income:
| Income | Employee NI | Self-Employed NI |
|---|---|---|
| £30,000 | £1,394 | £1,046 |
| £50,000 | £2,994 | £2,246 |
| £70,000 | £3,394 | £2,646 |
Self-employed pay less NI but also receive fewer benefits (no SSP, SMP, etc.).
State Pension Qualification
To qualify for State Pension, you need 35 qualifying years.
Self-employed NI credits are automatic if profits exceed £6,725 (the Small Profits Threshold).
If profits are below £6,725:
- Pay voluntary Class 2: £3.45/week
- Or pay voluntary Class 3: £17.45/week
When Is Class 4 NI Paid?
Class 4 NI is calculated on your Self Assessment tax return and paid:
- First payment: 31 January (with tax)
- Second payment (if applicable): 31 July (payment on account)
Related Calculators
- Self-Employed Tax Calculator - Full breakdown
- National Insurance Calculator - NI calculation