How much National Insurance do self-employed people pay (Class 2 and Class 4)?

If you are self-employed in the UK, you may need to pay two types of National Insurance: Class 2 and Class 4. For the 2024/25 tax year, the rules have changed significantly.

Class 2 NICs (2024/25):

From 6 April 2024, self-employed people with profits above £6,725 no longer need to pay Class 2 NICs. However, you will still be treated as having paid them, so your State Pension entitlement is protected. The Class 2 rate was £3.45 per week, but this is no longer mandatory.

If your profits are below £6,725, you can still choose to pay Class 2 voluntarily at £3.45 per week to build up qualifying years for your State Pension.

Class 4 NICs (2024/25):

The main Class 4 rate was reduced from 9% to 6% in April 2024.

Example calculation:

If your self-employed profits are £40,000:

• Class 2: £0 (no longer required above £6,725)
• Class 4: (£40,000 - £12,570) x 6% = £27,430 x 6% = £1,645.80

Important: Class 4 NICs are calculated and paid through your Self-Assessment tax return, not monthly. They are due by 31 January following the end of the tax year. Class 4 contributions do not count towards State Pension eligibility, only Class 2 does.