National Insurance - Self Employed

This is actually very simple! You will pay class 2 and class 4. These are

  • Class 2: £2.50 per week. If you earn less than £5,315 in a year then you can apply for an exemption certificate. You might still choose to pay to accrue the benefits (See class 3).
  • Class 4: 9% of profits between £7,225 and £42,475 plus 2% of profits over £42,475.


Profit is determined by your personal tax return. For example, if you have earned a profit of £50,000 then your total National Insurance contribution will be £3,453 ie

  • Class 2: 52 weeks times £2.50 ie £130.
  • Class 4: 9% of earnings between £7,225 and £42,475 ie £3,172.50 (£35,250 * 9%) plus 2% of earnings over £42,475 ie £150.50 (£50,000 - £42,475 * 0.02)

By the way, the above is usually referred to as classes of contribution 2 and 4.