Are you self-employed and wondering how much National Insurance you’ll owe in 2025? Understanding what you’re expected to pay, when, and why can help you stay compliant and avoid unexpected costs.
Whether you’re a freelancer, contractor, or sole trader, National Insurance contributions (NICs) directly affect your eligibility for essential state benefits like the State Pension and Maternity Allowance.
With new thresholds and rates now in effect for the 2025–2026 tax year, it’s crucial to understand how National Insurance applies to your earnings. Depending on your income level, the type of work you do, and whether you have gaps in your contribution record, the amount you owe can vary.
In this guide, you’ll learn everything you need to know about the latest National Insurance rates, how to calculate them, and what steps to take if your profits fall below the required thresholds.
What Is National Insurance and Why Does It Matter to You?
National Insurance is a system of contributions that you pay to build up your entitlement to certain state benefits. If you’re self-employed in the UK, understanding National Insurance isn’t just about tax, it’s about securing your future.
These contributions go towards funding:
- The State Pension
- Maternity Allowance
- New-style Jobseeker’s Allowance
- Bereavement Support Payment
- Contribution-based Employment and Support Allowance
As a self-employed individual, you don’t pay the same type of National Insurance as employees. Instead, you’re responsible for Class 2 and Class 4 contributions. Class 2 ensures you protect your benefit entitlement, while Class 4 is based on your income and does not count towards benefits.
If you do not pay National Insurance or have gaps in your contribution record, you may not qualify for essential benefits, especially when it comes to receiving the full State Pension. You usually need at least 10 qualifying years of contributions to be eligible for the State Pension.
This is why staying informed about your National Insurance duties is vital. If you don’t stay on top of it, you risk missing out on significant support when you need it most. Whether your income is high or low, you have options for paying and protecting your record.
Do You Need to Pay National Insurance If You’re Self-Employed?
If you work for yourself in the UK, you’re typically required to pay National Insurance. But the exact contributions you owe depend on several key factors, including your annual profits, how your work is classified by HMRC, and whether you’ve registered properly for tax.
Who Qualifies as Self-employed for HMRC?
You’re considered self-employed by HMRC if you run your own business, take responsibility for its success or failure, and do not have the same rights as an employee.
This includes:
- Freelancers
- Contractors
- Sole traders
- Some landlords
- Those in partnerships
Your classification affects not just National Insurance but also how you file taxes and receive benefits.
Income Threshold to Start Paying
For the 2025/26 tax year, if your profits are less than £6,845, you are not required to pay National Insurance. However, you may choose to pay voluntary Class 2 contributions to maintain your benefit entitlement.
If your profits are between £6,845 and £12,570, Class 2 contributions are treated as paid, meaning you don’t pay them directly but your record is still protected.
Profits over £12,570 require you to pay Class 4 contributions, calculated as a percentage of your earnings.
Registering for NI as a Sole Trader or in a Partnership
To pay National Insurance correctly, you must register with HMRC as self-employed. This registration covers both your income tax and National Insurance obligations.
If you don’t register properly, HMRC may not recognise your contributions, even if you’ve filled out a Self Assessment tax return. Registration must be done separately when starting out, don’t assume submitting a tax return is enough.
Ensuring you meet registration requirements and understand your income thresholds will keep you compliant and ensure your contributions count toward the right benefits.
What Are the National Insurance Classes for Self-Employed Workers?
Self-employed individuals in the UK may pay two different types of National Insurance Class 2 and Class 4. Each serves a different purpose and is applied based on your annual profits. It’s essential to know the differences to calculate your liabilities correctly and avoid unnecessary gaps in your contribution record.
Class 2: Weekly Flat Rate
Class 2 National Insurance is a flat weekly rate, set at £3.50 per week for the 2025/26 tax year. You usually pay Class 2 through your Self Assessment tax return.
If your profits are less than £6,845, you’re not required to pay it, but you can choose to pay it voluntarily. This is important if you want to maintain eligibility for benefits like the State Pension or Maternity Allowance.
If your profits are between £6,845 and £12,570, you don’t pay anything, but you’re treated as having paid, which still protects your record.
Class 4: Profit-based Percentage
Class 4 contributions are based on how much profit your business makes annually.
For 2025/26:
-
6% on profits between £12,570 and £50,270
-
2% on profits over £50,270
Class 4 contributions do not count towards benefit entitlement. They are purely an income-based contribution to the National Insurance system.
You calculate and pay these contributions through your Self Assessment, and they are typically due by 31 January following the end of the tax year.
When You’re “treated as Paid” vs When You Actually Pay?
“Treated as paid” means that, even if you don’t physically pay Class 2 contributions (because your profits fall within a certain range), HMRC will still credit your record for that tax year.
This only applies if your profits fall between £6,845 and £12,570. If they’re below this range, you won’t be treated as paid, but can opt to pay voluntarily.
Understanding these distinctions is key to avoiding gaps that may affect your future entitlement to benefits like the State Pension or Employment and Support Allowance.
What’s the Difference Between Class 2 and Class 4 National Insurance?
When you’re self-employed, you might find it confusing to understand why you’re charged two different types of National Insurance, Class 2 and Class 4.
Even though both are paid through Self Assessment, they serve very different purposes, and understanding how they work side-by-side is essential for managing your taxes and protecting your benefits.
Class 2 contributions are mainly about protecting your access to state benefits, such as the State Pension, Maternity Allowance, and Employment and Support Allowance.
These are usually treated as paid if your profits are between £6,845 and £12,570, or paid voluntarily if your earnings fall below the threshold.
Class 4 contributions, on the other hand, are based on your profit level and are simply a mandatory tax if your profits exceed £12,570. However, Class 4 NICs do not count toward any state benefits.
Class 2 vs Class 4 National Insurance (2025/26):
| Feature | Class 2 NIC | Class 4 NIC |
|---|---|---|
| Type of Payment | Flat weekly rate | Percentage of annual profits |
| Rate (2025/26) | £3.50 per week | 6% (£12,570–£50,270)2% (over £50,270) |
| When You Pay | Voluntary or treated as paid if profits ≥ £6,845 | Mandatory if profits > £12,570 |
| How It’s Paid | Self Assessment or voluntary direct to HMRC | Self Assessment |
| Affects State Benefits? | Yes – counts toward benefits | No – does not count toward benefits |
| Mandatory? | Only if profits ≥ £6,845 (treated as paid) | Yes, if profits exceed £12,570 |
Understanding both types helps you stay compliant and ensure your future entitlements are secure.
What Are the Current National Insurance Thresholds for 2025/26?
In the 2025/26 tax year, HMRC has set clear thresholds that determine how much National Insurance you must pay as a self-employed individual. These thresholds decide whether you pay nothing, are treated as having paid, or must pay full contributions.
If your profits are less than £6,845, you don’t need to pay any Class 2 or Class 4 contributions. However, you can choose to pay voluntary Class 2 contributions to maintain your entitlement to certain benefits.
If your profits are between £6,845 and £12,570, you’re treated as having paid Class 2. No actual payment is required, but your contributions count toward qualifying for the State Pension and other benefits.
If your profits exceed £12,570, you must pay Class 4 contributions based on your profit bands. These payments do not count toward benefit entitlement but are still mandatory.
National Insurance Thresholds for Self-Employed (2025/26):
| Profit Band (£) | Class | Contribution | Notes |
|---|---|---|---|
| Under £6,845 | Class 2 | Voluntary £3.50/week | Optional to protect benefits |
| £6,845 – £12,570 | Class 2 | Treated as paid | Record protected, no payment due |
| Over £12,570 – £50,270 | Class 4 | 6% of profits | Mandatory |
| Over £50,270 | Class 4 | 2% of profits | Mandatory |
These updated thresholds help ensure clarity for all self-employed earners in 2025/26.
How Much National Insurance Will You Pay Based on Your Profits?
Your total National Insurance bill depends on how much profit you make each tax year. The more your business earns, the higher your contributions, but only above specific income thresholds.
HMRC’s system is designed so that lower-income self-employed workers are protected, while higher earners contribute proportionally more to the system.
If your profits are under £6,845, you’re not required to pay Class 2 or Class 4 National Insurance, though you may choose to pay Class 2 voluntarily to protect your benefits record.
If your profits fall between £6,845 and £12,570, your Class 2 contributions are treated as paid, meaning your record is protected without an actual payment.
For profits above £12,570, you must pay Class 4 National Insurance, calculated as:
-
6% on profits between £12,570 and £50,270
-
2% on profits over £50,270
Example National Insurance Based on Profit Bands:
| Annual Profit (£) | Class 2 | Class 4 | Total NI Due |
|---|---|---|---|
| £5,000 | £0 (optional) | £0 | £0 (unless voluntary Class 2) |
| £11,000 | Treated as paid | £0 | £0 |
| £13,000 | Treated as paid | 6% of £430 = £25.80 | £25.80 |
| £55,000 | Treated as paid | 6% of £37,700 + 2% of £4,730 = £2,356.60 | £2,356.60 |
Real-life Example:
Amira, a freelance web developer, earns £45,000 in 2025/26. Her Class 4 contribution is 6% of £32,430, which equals £1,945.80. Because her profits are over £12,570, she’s treated as having paid Class 2 automatically, ensuring her National Insurance record remains protected without any voluntary payments.
These examples help you estimate your liability and ensure you’re budgeting correctly for your annual contributions. These estimates give you a snapshot of what to expect. Always double-check your Self Assessment return to ensure accurate calculations.
Do You Need to Pay Voluntary National Insurance?
If your self-employed profits fall below certain thresholds, you might not have to pay National Insurance. However, choosing to pay voluntarily can protect your future entitlement to benefits such as the State Pension or Maternity Allowance.
When and Why You Might Choose to Pay Voluntarily?
You may want to pay voluntary Class 2 contributions if:
- Your profits are under £6,845, and you’re not automatically protected
- You want to maintain your qualifying years for the State Pension
- You expect future gaps in employment
- You want to ensure eligibility for benefits like Employment and Support Allowance (ESA) or Bereavement Support Payment
Class 2 voluntary contributions cost £3.50 per week in 2025/26. These payments can be made through Self Assessment, or arranged directly with HMRC if you’re not required to file a return.
Protecting Your State Pension Record
To receive the full New State Pension, you need 35 qualifying years of contributions. A minimum of 10 years is required to receive anything at all.
Voluntary contributions ensure you don’t lose out on years when your profits are too low or if you’re working irregularly.
How to Check if You Have Gaps in Your NI Record?
You can view your contribution record online through your Personal Tax Account on the GOV.UK website.
This shows:
- How many qualifying years you have
- Whether you’ve missed any years
- How much it will cost to fill gaps
- If voluntary contributions would benefit you
Who Cannot Pay Voluntarily?
You can’t pay voluntary contributions if:
- You don’t have any gaps
- You’re a married woman or widow paying reduced rates
- You’ve missed the deadline to pay for specific years
Reviewing your record and choosing voluntary payments could help you avoid missing out on long-term benefits.
How Do You Pay National Insurance When You’re Self-Employed?
Paying National Insurance as a self-employed person in the UK is typically done through the Self Assessment tax system. However, the process can vary depending on your circumstances, income level, and whether you qualify for exemptions or special rules.
Paying Through Self Assessment
Most self-employed individuals pay Class 2 and Class 4 National Insurance as part of their annual Self Assessment tax return. You’ll submit your return each year and pay by 31 January following the end of the tax year.
The return calculates:
- Your income tax
- Class 2 contributions (if applicable)
- Class 4 contributions based on profits
If you use payments on account, your Class 4 NICs may be included in your advance payments for the next year.
Due Dates and Budget Payment Plans
Your National Insurance is usually due on:
- 31 January for the previous tax year
- 31 July if you’re making payments on account
If you prefer, HMRC offers a Budget Payment Plan, allowing you to spread payments throughout the year.
When to Notify HMRC?
You must tell HMRC you’re self-employed as soon as you start trading. This registration process activates your tax and National Insurance accounts.
If you don’t notify HMRC, they won’t recognise your contributions, and your record could have gaps even if you file your tax return later.
How Payment Works With Multiple Trades or Mixed Employment?
If you operate more than one business, your profits are combined when calculating NIC.
If you’re employed and self-employed, you may still need to pay both Class 1 and Class 4 contributions. However, there’s a maximum cap, and HMRC will adjust this based on your total liability.
Keeping accurate records and filing on time helps ensure everything is calculated correctly and protects your benefits.
Are There Exceptions or Special Rules You Should Know About?
While most self-employed individuals follow standard National Insurance rules, there are exceptions and special circumstances where different contributions or arrangements apply. Understanding whether these rules affect you can help prevent missed payments or benefit gaps.
Specific Jobs (E.g. Examiners, Religious Ministers)
If you’re working as an examiner, moderator, invigilator, or question setter, or if you’re a minister of religion without a salary, you’re typically not required to pay Class 2 contributions via Self Assessment. However, you can still make voluntary contributions to protect your National Insurance record.
Other roles that fall under this rule include:
- Volunteers working abroad
- Share fishermen
- People making personal investments without fees
These roles require direct contact with HMRC to arrange payments.
Reduced Rate for Married Women or Widows
Women who opted in to the reduced National Insurance rate before 1977 may still qualify to pay less. However, once the marriage ends due to divorce or annulment, this reduced entitlement ends immediately.
You can check your entitlement or give up your reduced rate using HMRC forms CF9 or CF9A.
Landlords, Investors, and Overseas Workers
If you rent property or invest on your own behalf without running a business, you’re usually not considered self-employed for National Insurance. However, if letting property is your main source of income or a full business, Class 2 or Class 4 contributions may still apply.
If you live abroad, you might want to pay voluntary contributions to keep your State Pension entitlement, especially if you’re close to retirement age.
If You’re Both Employed and Self-employed
In this case, you may pay Class 1 through your employer and Class 4 from your business. HMRC caps how much National Insurance you must pay each year, so you won’t be overcharged. They automatically adjust your liabilities when you file your Self Assessment.
These exceptions are vital to understand, especially if your circumstances don’t follow the usual self-employed path.
Will Class 4 National Insurance Count Towards State Benefits?
No, Class 4 National Insurance contributions do not count towards state benefits. This is one of the most misunderstood aspects of self-employed NIC.
You might assume that because Class 4 is mandatory for profits over £12,570, it entitles you to benefits. But this is not the case. Only Class 2 contributions, whether paid or treated as paid, are counted toward your National Insurance record.
This means that your State Pension, Maternity Allowance, Bereavement Support Payment, and other benefits rely on having Class 2 contributions recorded.
For example:
- Class 2 counts toward the New State Pension, which requires 35 qualifying years
- It also counts toward Employment and Support Allowance (ESA) and Maternity Allowance
- Class 4, even though paid in larger sums, provides no benefit entitlement
This is why voluntary Class 2 payments are strongly recommended if your profits fall below the earnings threshold.
If you’re relying on your self-employed income to secure future benefits, it’s essential to maintain accurate Class 2 records, Class 4 alone will not protect you.
Can Gaps in Your National Insurance Record Affect Your Pension?
Yes, gaps in your National Insurance record can reduce or even prevent you from receiving the full State Pension. The UK State Pension system is based on having qualifying years, usually earned by paying National Insurance or receiving credits.
If you were self-employed but didn’t pay Class 2 contributions, or weren’t treated as paid, you may have gaps in your record for those years.
This often happens when:
- Your profits were under the £6,845 threshold
- You failed to register as self-employed with HMRC
- You missed Self Assessment deadlines
- You worked abroad or had mixed employment statuses
Gaps can lead to:
- Lower pension payments
- Ineligibility for contributory benefits
- Issues qualifying for Maternity Allowance or ESA
The minimum to receive any State Pension is 10 qualifying years. For the full amount, you typically need 35 years of contributions or credits.
To fix gaps, you can check your National Insurance record online and decide if it’s beneficial to pay voluntary contributions. HMRC’s system shows what you owe and the impact on your future pension.
What Happens If You Don’t Pay National Insurance?
Not paying National Insurance when you should can have serious consequences. It can lead to gaps in your record, loss of benefit entitlement, and even penalties from HMRC.
Here’s what might happen if you don’t pay:
- You may lose eligibility for the State Pension, Maternity Allowance, or ESA
- You could be subject to interest or penalties if HMRC determines you owe Class 4 contributions
- You might miss the opportunity to top up your record with voluntary contributions if deadlines pass
If you didn’t pay because your profits were low, you’re generally safe, but only if HMRC recognises your Class 2 as treated as paid.
If you fail to register with HMRC, submit a Self Assessment, or miss the voluntary payment deadline, those years won’t count toward your National Insurance record.
Real-life example:
Lisa, a freelance designer, assumed that filling out her Self Assessment return each year was enough. She didn’t register separately as self-employed with HMRC.
As a result, her Class 2 NICs were not recorded, leaving three missing years in her National Insurance record. When she later checked her State Pension forecast, her expected amount was lower than planned.
To avoid these issues:
- Always register with HMRC when starting self-employment
- File your Self Assessment on time
- Check if you’re eligible to pay voluntary Class 2 contributions
- Review your NI record regularly to spot any gaps early
Taking action now can help you avoid missing out on future financial support and prevent costly back-payments or loss of benefits.
Conclusion
Staying on top of your National Insurance contributions is one of the most important responsibilities you have as a self-employed person in the UK.
Whether you’re just starting out or have been running your business for years, understanding how Class 2 and Class 4 NICs apply to your profits helps protect your entitlement to vital state benefits.
For the 2025/26 tax year, thresholds and rules have changed slightly, and knowing when you’re liable, when you’re treated as paid, and when you might want to pay voluntarily is essential.
By registering with HMRC, filing on time, and checking your contribution record regularly, you can avoid costly mistakes and future benefit gaps. Take control of your contributions now and ensure that your hard work today helps build financial security for tomorrow.
FAQs
What happens if I earn under the National Insurance threshold?
If your annual profits are under £6,845, you’re not required to pay Class 2 or Class 4 contributions. However, you can choose to pay voluntary Class 2 to protect your benefits entitlement.
Can I pay National Insurance early to get benefits like maternity allowance?
Yes, you can pay Class 2 contributions early to qualify for maternity allowance if you’re within the 66-week test period. Contact HMRC directly to arrange early payment if needed.
How do I check for gaps in my National Insurance record?
You can log in to your Personal Tax Account on the GOV.UK website to view your full National Insurance history. It shows any gaps, how much to pay to fill them, and if you’re eligible for credits.
Do landlords or property investors need to pay National Insurance?
Generally, landlords or investors don’t need to pay unless property letting is run as a business. If it’s your main source of income, you may fall under self-employment rules.
If I move abroad, do I still pay self-employed National Insurance?
If you’re working or living abroad, you may not be required to pay UK National Insurance. However, you can choose to pay Class 2 contributions voluntarily to maintain your benefit entitlements.
Will voluntary contributions always increase my State Pension?
Not always, voluntary contributions only help if you have gaps in your record and need extra qualifying years. Check your State Pension forecast before making payments.
Can I spread my NI payments throughout the year?
Yes, HMRC offers a Budget Payment Plan that allows you to pay weekly or monthly in advance. This can help you manage your cash flow more effectively.
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