Self Employment Tax Guide
National Insurance
You usually pay two types of National Insurance if you’re Self Employed:
- Class 2 if your profits are £6,205 or more a year (2018/19 tax year)
- Class 4 if your profits are £8,424 or more a year (2018/19 tax year)
You calculate your profits by deducting your expenses from your Self Employed income.
The table below sets out how much National Insurance you pay if you are Self Employed:
| National Insurance Type | Rate for tax year 2018 to 2019 |
|---|---|
| (payment due by 31 January following end of tax year) | |
| Class 2 | £2.95 per week |
| Class 4 | 9% on profits between £8,424 and £46,350, then 2% on profits over £46,350 |
How to pay
Most people pay Class 2 and Class 4 National Insurance annually through the Self Assessment system.
Special rules for specific jobs
Some Self Employed people don’t pay National Insurance through Self Assessment, but may want to pay voluntary contributions. These are:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who don’t receive a salary or stipend
- people who make investments for themselves or others - but not as a business and without getting a fee or commission
There can also be some overlap and reduction in the NIC liability if you are both employed, and self-employed, during the same tax year.
