National Insurance rates for self-employed people

Our team of experts tell you all about the different rates of National Insurance for self-employed people

Our experts at DSR Tax Claims know how hard it is to find good, quality information about HMRC’s National Insurance rules and regulations that is easy to understand, and that’s why we have created these handy guides to tell you everything you need to know. Our aim is to make life easier for our clients and that is why we want to share our expertise with you. You can also call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

What are the National Insurance classes for self-employed people

If you are self-employed, there are two classes of National Insurance that you will pay, depending on your profits in each tax year.

You will pay Class 2 National Insurance rates on profits over £6,025 or more in a tax year, and Class 4 National Insurance rates on profits over £8,164 in a tax year. To calculate your profits, you need to deduct your expenses from the income you make through your self-employment.

How much National Insurance do you pay?

The National Insurance rates for tax year 2017/18 are as follows:


Rate of National Insurance you pay

Class 2

£2.85 per week

Class 4

9% on profits between £8,164 and £45,000

2% on profits above £45,000

How do self-employed people pay National Insurance?

Most self-employed people will pay their National Insurance in the same way they pay their Income Tax, through their Self Assessment tax return. It’s really important to tell HMRC when you become self-employed, either as a sole trader or in a partnership.

There are a few specific self-employed jobs which don’t pay National Insurance through their Self Assessment, although they may want to make voluntary contributions to keep their entitlement to certain contribution-based benefits. These jobs are:

  • Examiners, moderators, invigilators and other people involved in setting examination questions

  • Religious ministers who don’t receive a salary or stipend

  • People who run businesses involving land or property

  • People who make investments for themselves or others, but not as a business and who don’t receive a fee or commission for doing so.

How can DSR Tax Claims help?

We know that calculating how much National Insurance you owe as a self-employed person can be a complicated affair, even with our helpful guide to tell you everything you might need to know. It’s all very well reading about it and knowing what HMRC’s stand on it is – but how do you apply that to your own circumstances? It can seem like an absolute minefield but help is always available and you don’t need to battle through this alone. Our team of experts at DSR Tax Claims are always on hand to help our clients and our excellent standing with HMRC means that we can make sure you don’t fall foul of their regulations, while claiming your maximum tax relief. We can even take care of all that paperwork and deal with HMRC on your behalf too. Call our friendly team on 0330 122 9972 – we’re the tax experts you can trust.

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