You usually pay 2 types of National Insurance if you’re self-employed:

  • Class 2 if your profits are £5,965 or more a year
  • Class 4 if your profits are £8,060 or more a year

You work out your profits by deducting your expenses from your self-employed income.

How much you pay

Class Rate for tax year 2015 to 2016
Class 2 £2.80 a week
Class 4 9% on profits between £8,060 and £42,385
2% on profits over £42,385

You can see National Insurance rates for past tax years.

How to pay

You pay Class 2 and Class 4 National Insurance through Self Assessment.

You must tell HM Revenue and Customs (HMRC) when you become self-employed as a sole trader or partnership.