Here’s What You NEED to Know About National Insurance as a Self-Employed Individual

So you’re Self-Employed Individual let’s talk National Insurance Contributions (NICs), what you owe, who’s exempt, and why some people should consider voluntary payments.

Do You Need to Pay Class 4 NICs?

If you’re self-employed and earning over £12,570 per year, you’re required to pay Class 4 NICs.

Here’s what you’ll pay for in 24/25:

6% on profits between £12,570 and £50,270

2% on anything above £50,270

Good news? These rates won’t change for 2025-26!

Who is Exempt from Class 4 NICs?

Not everyone has to pay! If you fall into one of these groups, you’re off the hook:

❌ Under 16 at the start of the tax year.

❌ Over State Pension age at the start of the tax year.

❌ Trustees, executors, or administrators handling taxable profits.

If you hit pension age DURING the tax year, you still need to pay for that full year!

So What About Class 2 NICs?

🚨 Big change! As of April 6, 2024, Class 2 NICs are NO LONGER mandatory for self-employed people.

BUT, before you celebrate, some people should still pay voluntarily!

✅ Why? Paying Class 2 NICs (just £3.45 per week now, rising to £3.50 in 2025) helps you qualify for the State Pension and other benefits.

If you’re self-employed but don’t pay National Insurance through self-assessment (like examiners, moderators, invigilators, or ministers of religion), it’s worth checking if voluntary contributions will help you protect your future entitlements.

Confused about what this means for you? Get in Touch, and we’ll help you figure out if you're paying the right amount, or if you could be saving!