National Insurance is a UK-based tax that we all have to pay to be entitled to claim specific state provided benefits such as: Job Seeker’s Allowance, state pension, use of the NHS, maternity allowance and statutory sick pay.
Regardless of whether you’re self-employed or employed, you have to pay it. However, the type/class that you pay is determined by your employment status.
How National Insurance is calculated
As a self-employed person, you have to pay your National Insurance contributions yourself in your annual self-assessment tax return.
What am I required to pay?
Head to our National Insurance calculator at the top of the page to see the exact amount you’ll pay, or to see a breakdown of rates, use the table below.
| NI class | Who pays? | How? | How much? |
| Class 1 | Employees earning over £12,570 | Deducted from salary | 8% (or 2% if you earn over £242 per week) |
| Class 1A/1B | Employers | Paid via PAYE | 13.8% |
| Class 2 | Abolished from the 2024/25 tax year | ||
| Class 3 | Voluntary contributions | Direct Debit | £17.45 per week |
| Class 4 | Self-employed earning over £12,570 | Self assessment | 6% (or 2% if you earn over £50,270) |
Do I pay National Insurance if I earn less than my personal allowance?
When you earn less than £12,570 in one tax year, you’re now not needed to pay both Income Tax and National Insurance. The first £12,750 of your income is referred to as the ‘Personal Allowance’.
You do not need to pay income tax on it, unless you earn over £100,00, as from that point, you start to lose eligibility to it.
