Compliance
National Insurance for Self-Employed Couriers
National Insurance for self-employed couriers is usually Class 4 through Self Assessment. Inside IR35, Class 1 can apply. Keep the class on the driver file.
20 April 2024 · Zerity editorial team
National Insurance for self-employed couriers is usually Class 4, with Class 2 treated as paid once profits reach the small profits threshold. HMRC collects both through Self Assessment. Class 1 applies when the person is an employee, or when off-payroll rules make the client the deemed employer.
Reviewed 25 September 2026. Figures below are for the tax year 6 April 2026 to 5 April 2027, taken from HMRC's rates and allowances publication. Check that page before you use a number in a pay conversation. This is not advice on how to reduce a bill.
- Which class applies
- Rates for 6 April 2026 to 5 April 2027
- What the depot should store
- Frequently asked questions
Which class applies
The class follows the tax status. It does not follow the words on the invoice.
| Status | Class | Who pays HMRC |
|---|---|---|
| Self-employed for tax, no intermediary, profits at or above the small profits threshold | Class 4 on profits. Class 2 is treated as paid, so there is nothing to pay for Class 2. | The courier, through Self Assessment. Not the depot. |
| Self-employed for tax, profits below the small profits threshold | Class 4 does not arise below the lower profits limit. Class 2 is voluntary if they choose to pay it. | The courier, if they choose to pay. Not the depot. |
| Employee of the depot | Class 1 | PAYE. The employer deducts the employee's share and pays the employer's share. |
| Works through a company and the off-payroll rules apply, decision "employed for tax" | Class 1, through the deemed employer | The client or the deemed employer operates PAYE. See IR35 for who that is. |
Someone who has reached State Pension age does not pay National Insurance. GOV.UK's National Insurance guide covers age, credits and the personal record. A depot does not need that chapter to run a pay file. It needs the class the status decision requires.
A self-billing invoice does not turn Class 1 into Class 4. Self-billing decides who raises the VAT invoice. It is explained in HMRC self-billing for couriers. Who decides the tax status, including when a medium or large client must issue a status determination statement, is IR35 for couriers. Rights such as holiday pay are employment status for self-employed couriers, which is a different test.
Rates for 6 April 2026 to 5 April 2027
These figures are from HMRC's rates and allowances: National Insurance contributions for 2026 to 2027. The shorter self-employed rates page can lag a tax year. If the two disagree, use the rates and allowances table and the legislation it cites.
| Item | 2026 to 2027 |
|---|---|
| Class 2 small profits threshold | £7,105 a year. At or above this, Class 2 is treated as paid and nothing is payable. |
| Voluntary Class 2, only if profits are below the small profits threshold | £3.65 a week |
| Class 4 lower profits limit | £12,570 |
| Class 4 upper profits limit | £50,270 |
| Class 4 rate between those limits | 6% |
| Class 4 rate above the upper profits limit | 2% |
| Class 1, most employees (category A) | 8% between the primary threshold and the upper earnings limit, then 2%. [HMRC's how much you pay page](https://www.gov.uk/national-insurance/how-much-you-pay) states the weekly bands. |
| Employer Class 1 | 15% above the secondary threshold for the standard category. Bands are on the same HMRC rates pages. |
Do not hard-code these into a pay run past 5 April 2027. HMRC changes thresholds. The depot's job is to know which treatment the status decision requires, not to invent a blended rate.
What the depot should store
Store three things on the driver file:
- The status decision, and the date it was made
- Whether PAYE and Class 1 apply, or whether the courier pays Class 4 through their own Self Assessment
- The National Insurance number you already hold for that engagement, so the record matches the person you pay
Do not store a guess. If the decision is missing, the pay run is the wrong place to invent one. HMRC guides collects the official pages. The self-billing agreement is the invoice method, kept separate from the class.
Zerity can hold that decision, the date and the PAYE flag next to the driver. It does not calculate an HMRC liability and it does not file a return.
Frequently asked questions
Which National Insurance does a self-employed courier pay?
Usually Class 4, through their own Self Assessment, while they remain self-employed for tax. Class 2 is treated as paid once profits reach the small profits threshold, so it is not a separate bill in that case. Rates change. Use the current HMRC page.
When does a depot pay Class 1?
When the person is an employee, or when the off-payroll working rules make the client the deemed employer. A self-billing invoice does not turn Class 1 into Class 4.
What should we store?
The status decision, the date, and whether PAYE applies. Do not store a guess. If the decision is missing, the pay run is the wrong place to invent one.
Written by
Zerity editorial team
The Zerity team writes about fleet management, compliance, and scaling logistics businesses, drawing from hands-on experience helping UK courier companies streamline operations.
