Self-employed National Insurance rates

The class you pay depends on your profits.

You work out your profits by deducting your expenses from your self-employed income.

You can see National Insurance rates for past tax years.

If your profits are £6,725 or more a year

Class 2 contributions are treated as having been paid to protect your National Insurance record. This means you do not have to pay Class 2 contributions.

If your profits are more than £12,570 a year, you must pay Class 4 contributions.

For tax year 2024 to 2025 you’ll pay:

  • 6% on profits between £12,570 and £50,270
  • 2% on profits over £50,270

If your profits are less than £6,725 a year

You do not have to pay anything but you can choose to pay voluntary Class 2 contributions.

The Class 2 rate for tax year 2024 to 2025 is £3.45 a week.

How to pay

Most people pay Class 2 and Class 4 National Insurance through Self Assessment.

You must tell HM Revenue and Customs (HMRC) when you become self-employed as a sole trader or as a partnership.

Special rules for specific jobs

Some self-employed people do not pay National Insurance through Self Assessment, but may want to pay voluntary contributions. These are:

  • examiners, moderators, invigilators and people who set exam questions
  • people who run businesses involving land or property
  • ministers of religion who do not receive a salary or stipend
  • people who make investments for themselves or others - but not as a business and without getting a fee or commission

Part of Set up as a sole trader: step by step

  1. Step 1 Check if being a sole trader is right for you

    1. Find out more about becoming a sole trader

  2. Step 2 Choose your business name

    1. Check the rules for naming your business

  3. Step 3 Check what records you need to keep

    When you start trading you must keep records. This will help you work out your profit or loss for your tax return.

    1. Find out what business records you need to keep

  4. Step 4 Register as a sole trader

    1. Check how to register as a sole trader

  5. Step 5 Check if you need to register for VAT

    1. Find out more about when to register for VAT

  6. Step 6 Plan for your tax bill

    You may need to pay Income Tax on your profits and may need to pay National Insurance contributions.

    1. Get an estimate of how much you will need to pay
    1. Find out more about Income Tax rates
    1. You are currently viewing: Find out more about National Insurance rates

  7. Step 7 Get help and support

    1. Sign up for business support emails
    1. Join a webinar or watch a video to learn more about your responsibilities
    1. Find out how to choose a tax agent if you want to use one