Self-Employed National Insurance on a £20,000 Profit (2026/27)
On a £20,000 self-employed profit in 2026/27 you pay £0 Class 2 and £445.80 Class 4 – £445.80 of National Insurance in total. Here is the full breakdown and what it does not include.
Your National Insurance breakdown on £20,000
| Component | Calculation | Amount |
|---|---|---|
| Class 2 (2026/27) | Profit £20,000 is above the £7,105 Small Profits Threshold → £0 | £0 |
| Class 4 (6% band) | 6% × (£20,000 − £12,570) = 6% × £7,430 | £445.80 |
| Class 4 (2% band) | Profit below £50,270 → none | £0 |
| Total National Insurance | Class 2 + Class 4 | £445.80 |
£20,000 of profit sits fully inside the Class 4 main rate band (£12,570–£50,270), so all of it is taxed at 6%.
Work out your own figure in seconds
Enter any profit and get Class 2 and Class 4 for 2026/27 or 2025/26.
Calculate your NI →What this figure does not include
- Income Tax – on £20,000 you would also pay roughly £1,486 (20% of the £7,430 above your £12,570 personal allowance).
- Payments on account – if your tax bill exceeds £1,000, HMRC asks for it in two instalments.
- Student loan repayments and pension contributions.
Why Class 2 is £0 at this profit level
Since April 2024, Class 2 is £0 for everyone with profits above the Small Profits Threshold (£7,105 in 2026/27). At £20,000 you are well above it, so you pay no Class 2 and still build up your National Insurance record for State Pension purposes.
FAQs
How much National Insurance do I pay on a £20,000 self-employed profit?
In 2026/27: Class 2 £0 (above the £7,105 threshold) and Class 4 £445.80 (6% on £7,430 above £12,570).
Does the £445.80 include Income Tax?
No – that is National Insurance only. You would also pay roughly £1,486 of Income Tax on a £20,000 profit, plus any student loan or pension adjustments.
See also: NI on £30,000 profit · NI on £50,000 profit · NI Calculator