Self-employed National Insurance

What is self-employed National Insurance?

If you're self-employed, you'll need to make National Insurance contributions on your profits when you earn above a certain amount.

Just as with anyone who works for an employer, building up National Insurance contributions over your working life entitles you to the state pension, plus other benefits, but it can be complicated to calculate.

This guide gives you step-by-step advice for working out your National Insurance bill if you're self-employed.

Need help with your tax return?

Send your tax return to HMRC using the service provided by GoSimpleTax.

Calculate your tax bill

How does self-employed National Insurance work?

National Insurance contributions are paid by employees, employers and self-employed people until they reach state pension age.

While those on a payroll system will have their contributions taken automatically via PAYE, self-employed people need to organise their own National Insurance payments through their self-assessment tax return.

If you're self-employed, there are three types of National Insurance contribution you may have to pay; Class 4, Class 2 or Class 3.

Class 4 National Insurance contributions 

As of 6 April 2024, the Class 4 rate will be cut from 9% to 6%. 

This is payable on profits between £12,570-£50,270, with the rate falling to 2% on profits over £50,270. 

If you earn below the threshold for NI contributions, you do not need to pay any National Insurance due to having low earnings. However, you might want to consider making voluntary contributions, as gaps in payments could affect your state pension and other benefits. 

• Find out more: National insurance contributions - read our complete guide to National Insurance.

Class 2 National Insurance contributions

In 2024-25 Class 2 contributions have been scrapped for self employed people earning over £6,725, and these workers will instead be able to build up National Insurance credits. 

If you earn under £6,725 you can still opt to buy Class 2 contributions voluntarily at a cost of £3.45 a week in 2024-25.

Voluntary National Insurance

If you earn below the threshold to pay Class 4 NI, you may choose to make these contributions anyway at the same rate.

This will allow you to avoid gaps in your payment history, as these gaps may mean you won't have enough years of contributions to get the full state pension.

Alternatively, you may choose to make voluntary Class 3 contributions, though the rate tends to be higher and you may not qualify for certain benefits. You can find out more in our guide to topping up your state pension.

• Find out more: National Insurance and benefits - which benefits are linked to each type of contribution?

National Insurance calculator 2024-25

Use our National Insurance calculator to discover how much you'll pay in each tax year - simply select the tax year you want from the dropdown list.

The calculator makes standard assumptions about employed and self-employed people to estimate your tax breakdown. So bear in mind that what you will take home also depends on other factors such as your pension contributions and student loan repayments - and can vary depending on your tax code.

N.b. To find out your total bill for 2022-23 you will need to check what you will pay between 6 April and 5 July, between 6 July and 5 November, and between 6 November and 5 April and add the three figures together.

Your National Insurance questions answered

Submit your 2023-24 tax return with Which?

File your 2023-24 tax return with the Which? tax calculator. Tot up your tax bill, get tips on where to save and submit your return direct to HMRC with Which?.