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.

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