How much is Class 4 National Insurance in 2026/27?

Class 4 National Insurance is 6% on self-employed profits between £12,570 and £50,270, and 2% on profits above £50,270. There is no Class 4 due on the first £12,570 of profit.

Do the self-employed still pay Class 2 National Insurance?

Compulsory Class 2 was abolished from 6 April 2024. If your profits are above the Small Profits Threshold of £6,845 you are treated as having paid Class 2, protecting your State Pension at no cost. Below that you can pay Class 2 voluntarily at £3.50 a week to keep your record complete.

How much NI will I pay on £40,000 of self-employed profit?

On £40,000 profit, Class 4 NI applies to the £27,430 between £12,570 and £40,000 at 6%, which is about £1,645.80 for 2026/27. No Class 2 is due as profits are above the Small Profits Threshold.

● 2026/27 · Self-employed · Class 2 & 4

Class 2 & 4 National Insurance Calculator

Self-employed National Insurance changed when compulsory Class 2 was abolished. Enter your annual profit to see your Class 4 NI at 6% and 2%, plus where you stand on the voluntary Class 2 contribution for 2026/27.

🧮 Class 4 at 6% / 2% 🪙 Voluntary Class 2 🏛️ HMRC sourced

Calculate self-employed NI

Sole trader · 2026/27

Annual taxable profit

Self-employed National Insurance in 2026/27

Sole traders and partners pay National Insurance differently to employees. There are two classes to know about — and one of them barely costs anything any more.

Class 4 is the main self-employed NIC and is charged on your taxable profits. For 2026/27 you pay 6% on profits between £12,570 and £50,270, then 2% on profits above £50,270. There is no Class 4 at all on the first £12,570 of profit — the same Lower Profits Limit that mirrors the Personal Allowance.

Class 2 changed fundamentally. From 6 April 2024 the compulsory Class 2 flat charge was abolished. If your profits are above the Small Profits Threshold of £6,845, you are now treated as having paid Class 2 — so you still build up your State Pension and benefit entitlement, but pay nothing for it. If your profits are below £6,845, you can choose to pay voluntary Class 2 at £3.50 a week (around £182 a year) to keep your National Insurance record complete.

Class 4 on £40,000 profit

A worked example: £40,000 profit

First £12,570 — no Class 4 NI.
Profit from £12,570 to £40,000 = £27,430 at 6% = £1,645.80.
No 2% upper-band NI, because profit is under £50,270.
No Class 2 due (profit is above the £6,845 Small Profits Threshold).
Total NI: £1,645.80.

Income Tax sits on top of this — the self-employed tax calculator shows both together, and the freelancer tax calculator is handy if you also have other income.

Protecting your State Pension

The big reason to watch the Class 2 position is the State Pension. You generally need 35 qualifying years for the full new State Pension. If a quiet trading year leaves your profits under £6,845, paying the £3.50-a-week voluntary Class 2 is usually far cheaper than buying back the year later through voluntary contributions. See the State Pension calculator to check your projected entitlement.

Class 2 & 4 NI FAQs

How much is Class 4 NI in 2026/27?

6% on profits between £12,570 and £50,270, then 2% above £50,270. The first £12,570 of profit is free of Class 4.

Do the self-employed still pay Class 2?

Compulsory Class 2 was abolished from 6 April 2024. Above the £6,845 Small Profits Threshold you are treated as having paid it at no cost. Below that you can pay £3.50 a week voluntarily to protect your record.

How much NI on £40,000 profit?

About £1,645.80 — that is 6% on the £27,430 between £12,570 and £40,000. No Class 2 is due.

Main rate band (£12,570–£50,270 @ 6%)	£0
Upper band (over £50,270 @ 2%)	£0
Total Class 4 NI	£0