How much will I pay?
Class 4 is worked out on your profit for the tax year: what you're paid, minus allowable business costs. Nothing is due on the first £12,570. You pay 6% on profit from there up to £50,270, then 2% on anything above.
| Profit | Class 4 for the year | Class 2 |
|---|---|---|
| £6,000 | £0 | Nothing to pay; voluntary at £3.65 a week |
| £10,000 | £0 | Treated as paid |
| £12,570 | £0 | Treated as paid |
| £15,000 | £145.80 | Treated as paid |
| £20,000 | £445.80 | Treated as paid |
| £30,000 | £1,045.80 | Treated as paid |
| £40,000 | £1,645.80 | Treated as paid |
| £50,270 | £2,262 | Treated as paid |
| £60,000 | £2,456.60 | Treated as paid |
| £80,000 | £2,856.60 | Treated as paid |
Income tax comes on top. Our self-employed tax rates guide shows both together at each level of profit.
Do I still pay Class 2?
Not as a payment. If your profit is £7,105 or more, Class 2 is treated as having been paid. You pay nothing, but the year still counts on your National Insurance record.
If your profit is below £7,105, you don't have to pay anything, but the year won't count towards your State Pension unless you get credits some other way. You can pay voluntary Class 2 instead, at £3.65 a week.
What it does for your State Pension
Each year that counts on your National Insurance record is a qualifying year. You need 10 qualifying years to get any new State Pension, and 35 for the full amount if your record started after April 2016. A self-employed year with profit over £7,105 counts automatically.
Years with low profit, a long gap between jobs or time spent abroad can leave holes. Check your National Insurance record to see where you stand.
How you pay it
There's no separate bill. Class 4 goes on your self-assessment tax return and is paid with your income tax by 31 January after the tax year ends. If your bill is big enough for payments on account, those include Class 4 as well.
Our tax set-aside calculator works out income tax and Class 4 together and turns them into a monthly figure to put aside.
If you have a job as well
Your employer takes Class 1 National Insurance from your wages as normal. Your self-employed profit is separate: Class 4 is worked out on that profit alone and paid through self-assessment.
Common questions
I'm employed and self-employed. Do I pay both?
Yes. Class 1 comes off your wages through PAYE as usual, and Class 4 is worked out on your self-employed profit and paid through self-assessment.
Should I pay voluntary Class 2?
If your profit is under £7,105 and you're short of qualifying years for your State Pension, it's a cheap way to fill the gap, at £3.65 a week. Check your National Insurance record first to see whether the year needs filling.
Is Class 4 included in payments on account?
Yes. Payments on account cover income tax and Class 4 together, so the January and July payments include both.
How do I check my National Insurance record?
Sign in to Check your National Insurance record on GOV.UK. It shows which years count towards your State Pension and where there are gaps.
More guides
- Self-employed tax rates 2026/27: what you'll pay on your profit
- Self-assessment deadline: 31 January 2027
- Payments on account: why your January tax bill is bigger than you expected
- Making Tax Digital for sole traders and landlords
Sources
- Self-employed National Insurance rates, GOV.UK. Checked 29 Oct 2026
- The new State Pension: how it's calculated, GOV.UK. Checked 29 Oct 2026
- Check your National Insurance record, GOV.UK. Checked 29 Oct 2026
- Understand your Self Assessment tax bill: payments on account, GOV.UK. Checked 29 Oct 2026
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