Do self-employed people still pay Class 2 National Insurance in 2026/27?

Class 2 NI is no longer charged for self-employed profits above the Small Profits Threshold (£6,725). HMRC treats Class 2 as paid for benefit purposes when profits sit between the SPT and the Lower Profits Limit (£12,570). Only people with profits below the SPT may volunteer Class 2 contributions at £3.50 a week to keep their NI record intact.

What are the Class 4 National Insurance rates for 2026/27?

6% on annual profits between £12,570 and £50,270, then 2% on every pound of profit above £50,270. Class 4 is calculated annually as part of Self Assessment, not weekly like Class 1.

How is self-employed NI different from employed (Class 1) NI?

Class 4 has lower rates than Class 1 (6% vs 8% on the main band) and is calculated on the full annual profit rather than weekly pay. That makes self-employed take-home roughly 2 percentage points higher than the equivalent employed salary in the £12,570–£50,270 band.

When is self-employed National Insurance paid?

Class 4 NI is paid alongside income tax through Self Assessment - by 31 January after the tax year ends, with payments on account due 31 January and 31 July if the bill exceeds £1,000.

Class 2 and Class 4 National Insurance Explained (2026/27)

What sole traders pay in NI this tax year - thresholds, rates, when it's due and worked examples for common profit levels.

Two classes, one bill

Self-employed sole traders are charged National Insurance under two HMRC schemes - Class 2 (a flat weekly contribution that maintains your NI record for State Pension and benefits) and Class 4 (a percentage of annual profits, payable through Self Assessment).

For 2026/27, Class 2 has been effectively retired for most sole traders: HMRC treats it as paid for benefit purposes once your profit exceeds the Small Profits Threshold (£6,725), so you don't write a cheque. Class 4 is the rate that actually changes your take-home, and it's lower than the equivalent employed (Class 1) rate.

Rates and thresholds at a glance

Annual profit	Class 2	Class 4
Below £6,725 (Small Profits Threshold)	No Class 2 due. Voluntary £3.50/week to maintain NI record.	No Class 4 due.
£6,725 – £12,570	Class 2 treated as paid (no payment required).	No Class 4 due.
£12,570 – £50,270	Class 2 treated as paid.	6% of profit in this band.
Above £50,270	Class 2 treated as paid.	6% on the band, 2% on profits above £50,270.

Source: gov.uk - self-employed National Insurance rates.

Class 2 - the £3.50 a week question

Class 2 used to be charged at a flat weekly rate. From 6 April 2024 onwards, the government abolished compulsory Class 2 for profits above the SPT, replacing it with an automatic credit. That carries through to 2026/27.

You may still want to volunteer Class 2 at £3.50 a week (£182.00 a year) if your profits are below £6,725 - it's the cheapest way to fill in qualifying years for the State Pension. You make the payment through Self Assessment.

Class 4 - the rate that hits your take-home

Class 4 is a flat 6% on annual profit between £12,570 and £50,270, dropping to 2% on profit above £50,270. There is no upper cap.

Two things make Class 4 cheaper than Class 1 (employed) NI:

The main rate is 6% rather than 8%.
It's calculated on annual profit, not weekly earnings, so a self-employed person with uneven income doesn't get penalised by the weekly threshold structure.

The combined effect: a sole trader on £50,000 of profit pays roughly £750 less National Insurance than an employee on the same gross.

Worked examples (2026/27)

Tap any salary to open the full breakdown including monthly and weekly take-home.

Profit	Class 4 NI	Income tax	Take-home
£25,000	£746	£2,486	£21,768
£50,000	£2,246	£7,486	£40,268
£75,000	£2,757	£17,432	£54,811
£100,000	£3,257	£27,432	£69,311

When is it due?

Class 4 NI is paid alongside income tax through Self Assessment:

31 January after the tax year ends - balancing payment for the year just ended.
31 January and 31 July - payments on account, each typically half of last year's tax + NI bill, applied if your previous Self Assessment liability exceeded £1,000.

HMRC charges interest from the deadline if you pay late, and a fixed late-filing penalty kicks in 24 hours after the 31 January Self Assessment deadline.

Tools sole traders use

Accounting software that keeps your records ready for Self Assessment and Making Tax Digital.

Xero - Online accounting with bank feeds and invoicing, widely used by UK accountants.
QuickBooks - Bookkeeping and invoicing software with features for sole traders.
Sage Accounting - UK accounting software for invoices, expenses and VAT returns.

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Pre-calculated take-home for every common profit level:

Browse all self-employed bracket pages (£20k–£150k in £5k steps)
£50,000 self-employed take-home - worked example with full breakdown
£100,000 self-employed take-home - Class 4 2% rate kicks in