You usually pay 2 types of National Insurance if you’re self-employed:
- Class 2 if your profits are £6,475 or more a year
- Class 4 if your profits are £9,501 or more a year
You work out your profits by deducting your expenses from your self-employed income.
How much you pay
| Class | Rate for tax year 2020 to 2021 |
| Class 2 | £3.05 a week |
| Class 4 | 9% on profits between £9,501 and £50,000 2% on profits over £50,000 |
You can see National Insurance rates for past tax years.
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 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
Source: HMRC