How to Pay Self-Employed National Insurance, and What Happens if You Don’t?

Self-employed people must pay National Insurance contributions. But the good news is that the rate you’ll pay is lower than the rate employees pay.

This is your essential guide to National Insurance for the self-employed. We’ll explore how much you have to pay, how to pay it, and what happens if you don’t pay.

How Much National Insurance Do Self-Employed People Pay?

The type of National Insurance you pay depends on how much you earn. Most self-employed people can pay Class 2 National Insurance. But if you earn over a certain amount in a year, you may have to make Class 4 National Insurance contributions.

What is Class 2 National Insurance?

You can elect to pay Class 2 National Insurance if your profits are less than £6,845 in the space of a year. You’ll pay a flat rate of £3.50 a week. We have a full guide to Class 2 National Insurance.

What is Class 4 National Insurance?

If your profits are more than £12,570 a year, you must pay Class 4 contributions.

For tax year 2025 to 2026 you’ll pay:

• 2% on profits over £50,270
• 6% on profits over £12,570 up to £50,270

How Do I Pay National Insurance as a Freelancer?

HMRC will calculate the National Insurance you owe when you submit your self-assessment tax return. So there’s no need to worry about choosing Class 2 or Class 4, and no need to worry about working out how much you owe. HMRC will do it all for you.

HMRC will then add your National Insurance contributions to your overall tax bill. So you’ll pay it at the same time you pay the rest of your tax.

What Happens If I Don’t Pay Any National Insurance as a
Self-Employed Person?

As HMRC calculates your National Insurance contributions, the only way to avoid paying them is to avoid paying your tax bill. But this is against the law and there are severe penalties for anyone who purposefully avoids tax. So in short, if you’re self-employed it’s hard to avoid making National Insurance payments!

Self-Employed Exempt from National Insurance

But that said, some self-employed people are exempt from National Insurance contributions, even as part of a self-assessment tax return. These include:

• Exam invigilators and moderators.
• Anyone who runs a business that involves land or property.
• Religious ministers who don’t receive salaries or stipends.
• Investors who do not receive fees or commissions.

In any case, if you don’t pay National Insurance through self-assessment, you can instead make a voluntary contribution. You can read a full guide to voluntary National Insurance contributions.

National Insurance for the Self-Employed is Nothing toWorry About

You shouldn’t have any problems with National Insurance contributions so long as you take all the necessary steps to register your business and keep good records.

But at the same time, it’s a good idea to get insurance as a self-employed freelancer or contractor. This can provide an essential safety net for many of the problems that self-employed workers face, from unpaid invoices to tax disputes.

We offer specialist insurance policies for freelancers and contractors with cover starting at 35p a day. Head here to learn more.

If you have any questions or would like to discuss your options please contact our Tapoly team at info@tapoly.com, call our helpline on +44(0)2078 460 108 ortry our chat on our website.