What is Class 4 NI in 2026/27?

Class 4 National Insurance is the main NI charge for UK self-employed. 6% on annual profits between £12,570 and £50,270; 2% on profits above £50,270. Collected through Self Assessment alongside income tax. The Class 4 rate was reduced from 9% to 6% on the main band from April 2024.

Has Class 2 NI been abolished?

Yes - from April 2024, Class 2 NI was abolished for self-employed people earning above the Small Profits Threshold (£6,725). State Pension qualifying years now come automatically with Class 4 NI status. Voluntary Class 2 NI (£3.65/week) remains available for those below the £6,725 threshold who want to maintain State Pension qualifying year credit.

Do pension contributions reduce Class 4 NI?

No - pension contributions reduce income tax on your self-employed profit but do NOT reduce Class 4 NI. Class 4 NI is calculated on profit before pension contributions. This is a key difference between self-employed and employed taxation: employees making pension contributions via salary sacrifice save both income tax AND NI, while self-employed making pension contributions save income tax only.

Class 4 National Insurance UK self-employed 2026/27

Last reviewed by the UK Tax Drag editorial team · 12 May 2026 · How we review · Next review due 12 November 2026 · See what changed · Report an error

5-minute read

What you need to know: Class 4 NI for UK self-employed - 2026/27

Quick answer: UK Class 4 NI 2026/27 rates: 6% on annual profits between £12,570 and £50,270; 2% on profits above £50,270. Class 2 NI was abolished from April 2024 - self-employed people earning above the Small Profits Threshold (£6,725) now automatically get State Pension qualifying years through Class 4 NI status. Self-employed earning below…

Key points:

Class 2 NI: £3.65/week flat rate (£189.80/year). Provided State Pension qualifying year and contributory benefit access.
Class 4 NI: 9% on profits £12,570-£50,270, 2% above. (Note: 9% was reduced to 6% from April 2024.)

UK Class 4 NI 2026/27 rates: 6% on annual profits between £12,570 and £50,270; 2% on profits above £50,270. Class 2 NI was abolished from April 2024 - self-employed people earning above the Small Profits Threshold (£6,725) now automatically get State Pension qualifying years through Class 4 NI status. Self-employed earning below £6,725 can voluntarily pay Class 2 (£3.65/week in 2026/27) to maintain State Pension credit. Class 4 NI is calculated and paid via Self Assessment - no separate process.

The Class 4 NI rate structure

Class 4 NI rate by profit band - 2026/27

Why Class 2 NI was abolished

Until April 2024, self-employed people earning above the Small Profits Threshold (£6,725 in 2023/24) paid two separate NI charges:

Class 2 NI: £3.65/week flat rate (£189.80/year). Provided State Pension qualifying year and contributory benefit access.
Class 4 NI: 9% on profits £12,570-£50,270, 2% above. (Note: 9% was reduced to 6% from April 2024.)

From April 2024:

Class 2 NI for those above the Small Profits Threshold was abolished. State Pension qualifying years now come automatically with Class 4 NI.
Class 4 NI rate was cut from 9% to 6% on the main band (no change to 2% upper band).
Voluntary Class 2 (£3.65/wk) remains available for those below the Small Profits Threshold who want State Pension credit.

Net effect for typical self-employedA £30,000-profit sole trader saved approximately £179 (Class 2 abolition) + £521 (Class 4 rate cut from 9% to 6% on £17,430) = ~£700/year from the April 2024 changes. Higher-profit individuals saved more proportionally.

Worked Class 4 NI maths

Profit £30,000

Profit subject to Class 4: £30,000 - £12,570 = £17,430
All in 6% band
Class 4 NI: £17,430 × 6% = £1,046

Profit £60,000

In 6% band: £50,270 - £12,570 = £37,700 × 6% = £2,262
In 2% band: £60,000 - £50,270 = £9,730 × 2% = £195
Class 4 NI total: £2,457

Profit £100,000

In 6% band: £37,700 × 6% = £2,262
In 2% band: £100,000 - £50,270 = £49,730 × 2% = £995
Class 4 NI total: £3,257

Class 4 vs employee Class 1 - the comparison

Earnings band	Employee Class 1 NI	Self-employed Class 4 NI	SE saving vs employed
£0-£12,570	0%	0%	0%
£12,571-£50,270	8%	6%	2 percentage points
£50,271+	2%	2%	0%

Self-employed pay 2% less NI than employees in the main band - reflecting that the self-employed get fewer contributory benefits (no SMP, SSP at lower rates) and no employer NI contribution.

Don’t forget Employer NIWhen comparing self-employed to employed total tax cost, factor in 15% Employer NI (2025/26 rate) that the employer pays - it’s notionally the cost of employing someone. Self-employed pay no Employer NI. The "true" cost difference between employment and self-employment is wider than the 2% Class 1 vs Class 4 gap suggests.

State Pension qualification for self-employed

Class 4 NI status (paying any Class 4) automatically qualifies you for State Pension qualifying years from April 2024 onwards. Pre-April 2024 years counted via Class 2.

Profit level	State Pension qualification
Above £12,570 (Lower Profits Limit)	Automatic qualifying year via Class 4 NI
£6,725-£12,570 (Small Profits to LPL)	Automatic qualifying year - no NI paid but credit given
Below £6,725	Optional - pay voluntary Class 2 (~£179/year) for State Pension credit
Zero or loss-making	Voluntary Class 2 (~£179/year) recommended if no other NI credits

You need 35 qualifying years for the full new State Pension (£237.46/week or £12,348/year in 2026/27).

Common Class 4 NI mistakes

Mistake 1: Forgetting voluntary Class 2 below the threshold.If your self-employment profit is under £6,725 and you have no other NI credits (no employment, no Child Benefit registration as carer), you lose a State Pension qualifying year unless you pay voluntary Class 2 (~£179/year). 35 years are needed for full State Pension - missing years is expensive long-term.

Mistake 2: Believing the £6,725-£12,570 band needs Class 2.From April 2024, profits in this band automatically qualify for State Pension credit without payment. No Class 2 required.

Mistake 3: Trying to "save" on Class 4 NI by maximising pension contributions.Pension contributions don’t reduce Class 4 NI - they reduce income tax. Class 4 NI is calculated on profit, not on taxable income after pension relief. So pension salary sacrifice savings (which save NI for employees) don’t apply to self-employed Class 4.

Mistake 4: Confusing Class 4 with Class 1A or Class 3.Class 1A is employer NI on benefits-in-kind. Class 3 is voluntary NI to fill State Pension gaps (different from voluntary Class 2 for low-profit self-employed). These are separate systems - don’t conflate.

Calculate your full self-employed tax

The sole trader tax calculator handles income tax, Class 4 NI and Payments on Account in one combined view.

Open the sole trader calculator

Sources and references

Class 4 NI rates from gov.uk Class 4 NI. Class 2 NI abolition from gov.uk Class 2 abolition. State Pension qualifying years from gov.uk State Pension qualifying years.

UK Tax Drag is educational and not regulated financial, tax, legal or business advice - see the disclaimer for the full position. Always verify current rates and rules at the original government sources before acting.

Other self-employed deep guides

Editorial accountability

Open Trust Centre →

Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.

Editorial standards Editorial process Corrections policy How we make money Editorial team Methodology