Self-employed individuals have a different structure for National Insurance, primarily involving Class 2 and Class 4 contributions. Your liability is calculated based on your annual profits via your Self Assessment tax return.
Class 2 NI is a flat weekly rate. While there have been moves to simplify this, for the 2025/26 tax year, the structure is as follows:
If your profits are below £6,725 (Small Profits Threshold), you can choose to pay Class 2 voluntarily to keep your contribution record intact for state pension purposes. If your profits are between £6,725 and £12,570, you are treated as having paid Class 2 contributions without actually having to pay them—a credit mechanism that protects low-earning self-employed workers.
Class 4 is profit-related and makes up the bulk of self-employed NI costs. The rates for 2025-26 are:
| Annual Profits | Rate |
|---|---|
| Up to £12,570 | 0% |
| £12,570 to £50,270 | 6% |
| Over £50,270 | 2% |
Unlike income tax, Class 4 NI is not paid on other sources of income like dividends or property rental; it is strictly on trade profits.
If you have gaps in your National Insurance record—perhaps due to working abroad, low earnings, or career breaks—you may not qualify for the full State Pension. You can plug these gaps by making voluntary Class 3 contributions.
2025/26 Class 3 Rate: £17.75 per week.
Before paying, it is always advisable to check your state pension forecast to ensure that paying for extra years will actually increase your pension entitlement.
You may be entitled to National Insurance credits if you are not working or earn below the Lower Earnings Limit (£123 per week) but meet other criteria. These credits count towards your State Pension as if you had paid.
Common situations where you receive credits include:
The new State Pension is entirely dependent on your National Insurance record.
If you have between 10 and 35 years, you will receive a proportionate amount. Checking your NI record via the HMRC app or website is crucial for long-term financial planning.
It is recommended to check your National Insurance record at least once a year. You can do this via the specific "Check your National Insurance record" service on GOV.UK. This service will show you:
Most employees are under Category A. However, different category letters affect the rates:
The recent changes to the Employer NI threshold (down to £5,000) have significant implications for businesses employing part-time staff who were previously below the secondary threshold.
This calculator estimates your National Insurance contributions using current 2025/26 HMRC rates. National Insurance (NI) is a payroll tax that funds the State Pension, NHS, and benefits system. Both employees and employers pay NI, though at different rates and thresholds.
Your NI contributions build entitlement to the State Pension and certain benefits. You need 35 qualifying years of contributions for the full new State Pension (£230.25 per week in 2025/26) and at least 10 qualifying years for any pension at all.
Employee NI (Class 1): 8% on earnings between £12,570 and £50,270, then 2% above £50,270. Employer NI: 15% on earnings above £5,000 per employee (threshold reduced from £9,100 in April 2025). Self-employed NI: Class 2 at £3.45/week (if profits exceed £12,570) and Class 4 at 6% between £12,570 and £50,270, then 2% above.
An employee earning £40,000: NI = (£40,000 - £12,570) x 8% = £2,194 per year (£183 per month). Their employer pays (£40,000 - £5,000) x 15% = £5,250 in employer NI. The total NI cost on this salary is £7,444 combined.
Source: Based on official HMRC 2025/26 NI rates. Last updated March 2026.
For the 2025-26 tax year, employees pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.
Class 2 National Insurance is charged at £3.45 per week for self-employed individuals with profits above the Small Profits Threshold of £6,725 (though liability usually aligns with the Lower Profits Limit of £12,570 for mandatory payment scenarios or voluntary to protect pension rights).
Self-employed individuals pay Class 4 NI at a rate of 6% on profits between £12,570 and £50,270, and 2% on profits over £50,270.
You generally need 35 qualifying years of National Insurance contributions or credits to receive the full new State Pension.
Voluntary Class 3 National Insurance contributions are currently priced at £17.75 per week.
Yes, following the budget announcements effective from April 2025, the Employer (Class 1 secondary) rate increased to 15%, and the secondary threshold was reduced to £5,000 per year.
Employees generally stop paying Class 1 NI when they reach State Pension age. However, employers may still have to pay employer contributions on those earnings.
Data verified against official UK government sources. Last checked April 2026.