UK Class 2 + Class 4 NI Self-Employed 2026/27: Deep-Dive
Self-employed NI 2026/27: Class 4 at 6% and 2%, voluntary Class 2 at £3.65 a week below £7,105 profit, State Pension years and payment dates.
2026/27 self-employed NI at a glance
Class 2 (voluntary)
£3.65/wk
£189.80/year if profits < £7,105
Class 4 main rate
6%
£12,570 - £50,270 profits
Class 4 upper rate
2%
Profits above £50,270
Small Profits Threshold
£7,105
At or above: Class 2 treated as paid. Below: voluntary Class 2 or another credit
4 worked NI scenarios
| Scenario | Profit | Class 2 | Class 4 | Total NI | Qualifying year |
|---|---|---|---|---|---|
| Low-profit self-employed (£5,000) Below the Small Profits Threshold of £7,105. Voluntary Class 2 of £189.80 for the year secures a qualifying year if no other credit applies. | £5,000 | £190 | - | £190 | Yes |
| Side-hustler (£10,000 profit) Between the SPT (£7,105) and the Lower Profits Limit (£12,570): Class 2 is treated as paid, nothing to pay. | £10,000 | - | - | £0 | Yes |
| Mid-range self-employed (£30,000) Class 4 main rate on £17,430 = £1,046. Class 2 treated as paid. | £30,000 | - | £1,046 | £1,046 | Yes |
| High earner (£75,000) Class 4 6% on £37,700 = £2,262 + 2% on £24,730 = £495. | £75,000 | - | £2,757 | £2,757 | Yes |
The April 2024 NI reform - what changed for self-employed
The Autumn Statement 2023 and Spring Budget 2024 changed self-employed National Insurance from 6 April 2024: compulsory Class 2 ended (it is now treated as paid for profits at or above the Small Profits Threshold) and the Class 4 main rate fell from 9% to 6%. Source: GOV.UK.
| Element | Pre-April 2024 | 2026/27 | Effect |
|---|---|---|---|
| Class 2 (mandatory) | £3.45/wk (2023/24) | Treated as paid at or above £7,105 | £179/yr no longer paid (2023/24 rate) |
| Class 4 main rate | 9% | 6% | £1,123 less on £50,000 profit |
| Class 4 upper rate | 2% | 2% | Unchanged |
State Pension entitlement - 35-year rule
The full new State Pension (£241.30 a week in 2026/27) usually needs 35 qualifying years of contributions or credits. With fewer years the pension is reduced, by about £6.89 a week per missing year, and you usually need at least 10 years to get any.
Profit < £7,105 (SPT)
Voluntary Class 2 of £189.80 a year buys a qualifying year, repaid after about 28 weeks of the extra pension at today's rate.
£7,105 - £12,570
Class 2 treated as paid. Nothing to pay.
Profit > £12,570
Class 4 due; Class 2 treated as paid.
Deadline: you can usually pay voluntary contributions only for the past 6 tax years, with each year's deadline on 5 April (GOV.UK). Check your record and forecast at gov.uk/check-state-pension before paying.
Self Assessment payment cycle
Class 4 (and any voluntary Class 2) is paid through Self Assessment.
| Date | Payment | Notes |
|---|---|---|
| 31 January | Balancing payment for prior year + 1st POA for current year | Online return for the previous tax year due by this date (paper returns by 31 October) |
| 31 July | 2nd POA for current year | Each payment on account is half the previous year's Income Tax and Class 4 bill; not needed if that bill was under £1,000 or more than 80% was collected at source |
| 5 October | SA registration deadline | New self-employed: by 5 October after the end of the tax year in which you started |
Related guides
Frequently asked questions
Is Class 2 NI still payable in 2026/27?
Not if your profits are £7,105 or more. Since 6 April 2024 Class 2 is treated as paid for anyone with profits at or above the Small Profits Threshold, so it protects your National Insurance record without a payment. Below £7,105 you pay nothing but can choose voluntary Class 2 at £3.65 a week (£189.80 a year) to get a qualifying year. Class 3, the alternative for people who cannot pay Class 2, costs £18.40 a week in 2026/27 - about 5 times as much. Voluntary Class 2 can no longer be paid for periods abroad after 5 April 2026 (GOV.UK). Before paying, check whether you already get credits another way (for example Child Benefit for a child under 12, or Universal Credit) and check your State Pension forecast.
How does Class 4 NI work for 2026/27?
Class 4 is the main National Insurance charge on self-employed profits: 6% on profits between £12,570 (Lower Profits Limit) and £50,270 (Upper Profits Limit), and 2% on profits above £50,270. It is charged on trading and partnership profits only, not on employment, rental or investment income, after expenses and capital allowances. Worked example: £50,000 profit is below the Upper Profits Limit, so the charge is (£50,000 - £12,570) x 6% = £2,246. History: the main rate was 9% until 5 April 2024 and has been 6% since 6 April 2024.
When do I pay Class 2 + Class 4 NI?
Through Self Assessment. 31 January after the tax year: balancing payment for that year plus the first payment on account for the current year. 31 July: second payment on account. For 2026/27 (6 April 2026 - 5 April 2027): the balancing payment is due 31 January 2028, with the first payment on account for 2027/28; the second payment on account is due 31 July 2028. Payments on account are half of the previous year's Income Tax and Class 4 each, and are not needed if last year's bill was under £1,000 or more than 80% of your tax was collected at source (GOV.UK). Voluntary Class 2 is usually paid as part of your Self Assessment bill and is not included in payments on account. Late payment interest runs at Bank Rate + 4 percentage points, and late payment penalties can also apply.
Do I get NI credits if profits are below the SPT?
Not from self-employment. At or above the SPT (£7,105), Class 2 is treated as paid and protects your record. Below the SPT you need either voluntary Class 2 (£189.80 a year) or a credit from another route, for example registering for Child Benefit for a child under 12, Carer's Allowance, Universal Credit, or ESA (GOV.UK National Insurance credits). Why it matters: the full new State Pension is £241.30 a week in 2026/27, usually needing 35 qualifying years; each year is worth about £6.89 a week (£359 a year) at today's rate, if it adds to your entitlement. A year of voluntary Class 2 costs £189.80, so on that arithmetic it is repaid after about 28 weeks of pension. Check your record and forecast first: voluntary contributions do not always increase your State Pension, and you can usually only pay for the past 6 tax years.
How does NI for self-employed differ from employees?
Employees (Class 1): 8% on earnings between about £242 and £967 a week and 2% above, deducted through PAYE. Employers pay 15% on earnings above about £96 a week. Self-employed (Class 4): 6% and 2%, paid through Self Assessment. Comparison on £50,000: an employee pays £2,994 and the employer £6,750 (before any Employment Allowance), £9,744 in total; a sole trader with £50,000 profit pays £2,246 Class 4. Benefits: self-employed contributions count towards the State Pension, Maternity Allowance, Bereavement Support Payment and New Style ESA, but not New Style Jobseeker's Allowance. Statutory Sick Pay is an employer payment, so the self-employed have no equivalent.
What about Class 4 NI on partnership income?
Partners pay Class 4 on their share of the partnership profit, reported on the partnership pages of their own return. If a partner's share is below £7,105, voluntary Class 2 is available as for a sole trader. LLP salaried members: a member of a limited liability partnership is treated as an employee for tax and National Insurance when all three conditions in ITTOIA 2005 ss.863B-863D are met - broadly, most of their reward is fixed ("disguised salary"), they lack significant influence over the LLP, and their capital contribution is less than 25% of the disguised salary. These rules apply to LLPs, not to ordinary partnerships. Sleeping partners: HMRC's view is that they are liable to Class 4 (and Class 2) from 2013/14, because partners carry on the business whether or not they are active in it (NIM24523).
Can Class 4 NI be reduced by losses or pension contributions?
Trading losses: yes. For Class 4, relief follows the Income Tax rules (ITA 2007 ss.64, 72, 83 and 89) but only for losses from the activities that Class 4 is charged on (SSCBA 1992 Sch 2 para 3). Pension contributions: they get Income Tax relief but do not reduce profits for Class 4. Trading allowance: instead of deducting actual expenses you can deduct the £1,000 trading allowance; the reduced profit is used for both Income Tax and Class 4. Capital allowances reduce trading profit and therefore Class 4. Capital gains and investment income are not subject to Class 4.
What happens if I have both employment and self-employment?
Both apply in parallel: Class 1 on your wages through PAYE, Class 4 on your profits through Self Assessment. Where you pay a lot of Class 1, there is an annual maximum on the Class 4 you have to pay at the main rate (Social Security (Contributions) Regulations 2001 reg. 100); Class 4 paid above it can be repaid (reg. 102), and you can apply to HMRC to defer Class 4 in advance where you expect to exceed it. Worked example: £30,000 salary and £20,000 profit. Class 4 on the profit is (£20,000 - £12,570) x 6% = £446; Class 1 on the salary is worked out separately. At these levels the annual maximum is not reached.
When should I register for Self Assessment for self-employment?
By 5 October after the end of the tax year in which you started. Example: you start on 1 May 2026 (tax year 2026/27), so you register by 5 October 2027. If you notify late and tax is unpaid, the penalty is a percentage of the tax unpaid because of the failure: up to 30% if not deliberate, 70% if deliberate, 100% if deliberate and concealed (Finance Act 2008 Sch 41 para 6), with reductions for disclosure. Trading allowance: if your gross trading income is £1,000 or less in a tax year you usually do not need to register or declare it. Already filing? Add the self-employment pages to your existing return: the short SA103S if turnover was below the VAT registration threshold and your affairs are simple, otherwise SA103F (GOV.UK).
How does Class 2/Class 4 NI interact with State Pension entitlement?
Each qualifying year adds about 1/35 of the full new State Pension (£241.30 a week in 2026/27), and you usually need at least 10 qualifying years to get any. Self-employed routes to a qualifying year: profits of £7,105 or more - Class 2 treated as paid (and Class 4 due above £12,570); profits below £7,105 - voluntary Class 2, or Class 3, or a credit from another route. Cost against value: voluntary Class 2 at £189.80 a year is repaid after about 28 weeks of the extra pension; Class 3 at £956.80 after about 139 weeks, on today's rates. Deadline: you can usually pay voluntary contributions only for the past 6 tax years; each year's deadline is 5 April (GOV.UK). Check your forecast before paying.
Are there any NI exemptions or reductions for self-employed?
State Pension age: Class 4 stops from the tax year after the one in which you reach State Pension age. Special cases: share fishermen and volunteer development workers pay special Class 2 rates; examiners, moderators and invigilators pay a special Class 4 that is not collected through Self Assessment; ministers of religion without a salary or stipend pay no National Insurance (GOV.UK). Upper rate: profits above £50,270 are charged at 2%, not 6%. Employment Allowance (£10,500 in 2026/27) only reduces an employer's Class 1 bill; it does not reduce Class 4.
What records must self-employed keep for NI purposes?
Keep business records for at least 5 years after the 31 January filing deadline for the tax year (TMA 1970 s.12B); failing to keep them can lead to a penalty of up to £3,000. Keep: income records (invoices, receipts, takings), expense receipts, bank statements, VAT and payroll records if relevant, mileage logs, use-of-home calculations and capital purchase receipts. Making Tax Digital for Income Tax: from 6 April 2026 sole traders and landlords with qualifying income over £50,000 must keep digital records and send quarterly updates; the threshold falls to £30,000 from April 2027 and £20,000 from April 2028 (see our MTD guide). If records are missing, HMRC can estimate your profits.