National Insurance for Self-Employed 2025/26: Rates, Thresholds & How to Pay
National Insurance is the tax self-employed people love to forget about — until January when it lands on top of their income tax bill. If you're a sole trader or freelancer, here's exactly what you owe, when you pay it, and how to keep the bill as low as legally possible.
The Two Classes of Self-Employed NI
Self-employed people pay two types of National Insurance:
Class 2 NI
- Rate 2025/26: £3.45 per week (£179.40/year)
- Threshold: Only due if profits exceed £12,570/year (the Small Profits Threshold)
- What it buys you: Counts toward your State Pension qualifying years, Maternity Allowance, and some other benefits
- Voluntary payment: If your profits are below £12,570, you can still pay voluntarily to protect your State Pension record
Class 4 NI
This is the big one — it's calculated as a percentage of your profits:
- 6% on profits between £12,570 and £50,270
- 2% on profits above £50,270
Example: If your taxable profit is £35,000:
- Class 4 NI = 6% × (£35,000 − £12,570) = 6% × £22,430 = £1,345.80
- Class 2 NI = £179.40
- Total NI = £1,525.20
When Do You Pay?
Self-employed NI is collected through your Self Assessment tax return — you don't pay it monthly like an employee.
- 31 January 2027: Payment for 2025/26 tax year (plus first payment on account for 2026/27)
- 31 July 2027: Second payment on account for 2026/27
If you're new to Self Assessment, read our guide on UK freelancer tax deadlines 2026.
How to Reduce Your NI Bill
Since Class 4 NI is based on profits, everything that reduces your taxable profit reduces your NI bill too:
- Claim all allowable expenses — every expense you miss costs you income tax AND NI
- Use your annual pension allowance — pension contributions reduce your taxable profit
- Timing of income and expenses — if you're near a threshold, consider whether to accelerate expenses or defer income
- Capital allowances — claim the Annual Investment Allowance on equipment purchases
Class 2 NI and Your State Pension
Each year you pay Class 2 NI counts as a qualifying year toward your State Pension. You need 35 qualifying years for the full new State Pension (currently £221.20/week).
If your profits are below £12,570: You're not required to pay, but consider paying voluntarily. At £3.45/week, it's cheap pension insurance.
Gaps in your record? Check your National Insurance record at gov.uk/check-national-insurance-record. You can sometimes fill gaps going back several years.
NI If You're Employed AND Self-Employed
If you have a day job and a side hustle:
- Your employer deducts Class 1 NI from your salary as normal
- You also pay Class 2 and Class 4 on your self-employed profits
- But there's an annual maximum — you won't pay more than the combined total if both incomes are high
HMRC sorts this out automatically through your Self Assessment return. If you've overpaid, you'll get a refund.
Making Tax Digital and NI
From April 2026, Making Tax Digital for Income Tax requires quarterly reporting for self-employed people with income over £50,000 (dropping to £30,000 from April 2027). This doesn't change how NI is calculated or paid — it changes how you report the income it's based on.
Good record-keeping for MTD means accurate profit figures, which means accurate NI calculations. No more nasty surprises in January.
Quick Reference: 2025/26 NI Summary
| Rate | Threshold | |
|---|---|---|
| Class 2 | £3.45/week | Profits > £12,570 |
| Class 4 (lower) | 6% | Profits £12,570–£50,270 |
| Class 4 (upper) | 2% | Profits > £50,270 |
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