National Insurance

Do I pay National Insurance?

National Insurance contributions are paid by almost everyone who works for a living and go towards paying for pensions, benefits and healthcare. If you are self-employed, there are two main types of National Insurance contributions you need to know about.

Class 2 National Insurance contributions

Most self-employed people have to pay Class 2 National Insurance contributions but in certain circumstances you may be exempt from paying. You pay Class 2 National Insurance contributions as a fixed amount, by monthly Direct Debit.

For more information on paying Class 2 National Insurance contributions, including exceptions, visit www.hmrc.gov.uk/working/intro/class2.htm

To apply for an exemption from paying Class 2 National Insurance contributions (if your earnings will be low), download form CF10  Self-employed people with small earnings form. [816kb]

For more information on setting up your Direct Debit or paying by another method, visit www.hmrc.gov.uk/payinghmrc/class2nics.htm#2

Class 4 National Insurance contributions

You pay Class 4 National Insurance contributions if your annual taxable profits are over a certain amount. In certain circumstances you may be exempt from paying. You pay Class 4 National Insurance contributions at the same time as your Income Tax if you're self-employed or in a partnership. If your spouse is self-employed too, then each person pays their own Class 4 contributions.

For more information on paying Class 4 National Insurance contributions, including exceptions,  visit www.hmrc.gov.uk/working/intro/class4.htm