Last updated: 14 October 2026
Do you need to register to pay National Insurance on your income?
Employees don’t need to register separately. Employers deduct Class 1 National Insurance through payroll. If you are self-employed, you register for Self Assessment with HMRC, and your National Insurance (Class 4, and Class 2 where relevant) is worked out on your tax return. You need a National Insurance number in all cases. You get one automatically at 16, or you apply for one if you come to the UK.
National Insurance in 2026/27
| Type | Who pays | Rate |
| Class 1 employee | Employees earning over £242 a week | 8% up to £967 a week, 2% above |
| Class 1 employer | Employers | 15% above £96 a week |
| Class 2 | Self-employed | Treated as paid if profits are £7,105 or more; voluntary at £3.65 a week below that |
| Class 4 | Self-employed | 6% on profits between £12,570 and £50,270, 2% above |
| Class 3 | Voluntary | To fill gaps in your record |
Registering as self-employed
- Register for Self Assessment online at gov.uk by 5 October after the end of your first tax year
2. Get your Unique Taxpayer Reference (UTR)
3. File your return by 31 January
4. Pay income tax and Class 4 NIC by 31 January, with payments on account if needed
When you don’t pay NIC
- Profits or earnings below the thresholds
- After State Pension age (Class 1 and, from the tax year after you reach it, Class 4)
- Income such as pensions, rent, savings and dividends, which have no NIC
Why it matters for your State Pension
You need 35 qualifying years for the full new State Pension (£241.30 a week in 2026/27) and at least 10 for any. Self-employed people with profits of £7,105 or more get a qualifying year automatically. Below that, consider voluntary Class 2. Check your record on gov.uk.
Example
A self-employed tutor with £20,000 profit pays Class 4 NIC of 6% × £7,430 = £445.80. Her profit is over £7,105, so Class 2 is treated as paid, and she gets a qualifying year.
National Insurance mistakes for the self-employed
Many people assume they’ve paid Class 2 NIC when they no longer need to, and miss the chance to pay voluntarily if their profits are below the small profits threshold. Others forget that Class 4 is calculated on profits, not turnover. Check your National Insurance record in the HMRC app each year so you can fill any gaps that affect your State Pension.
A further example
A self-employed decorator with profits of £30,000 pays Class 4 NIC at 6% on profits between £12,570 and £30,000, which is £1,045.80. No Class 2 is payable, but the year still counts for his State Pension.
Frequently asked questions
I have a job and a side business. Do I pay NIC on both?
Yes. Class 1 through your job and Class 4 on your self-employed profits, subject to annual maximums.
How do I get a National Insurance number?
Apply on gov.uk if you don’t have one.
Do landlords pay NIC on rent?
Not usually.
Can I check my NIC record?
Yes, in your personal tax account.
Related: registering as a sole trader under £12,570 and what is National Insurance.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with National Insurance and self-employment. See our sole trader accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.
