Note: The chart excludes Northern Ireland. Self-employed contributions include Class 2 and Class 4 NICs; employer contributions include secondary Class 1, Class 1A and Class 1B NICs. Note that in 2023–24 a 12% rate of employee NICs applied between 6 April 2023 and 5 January 2024 with a 10% rate applying for the remainder of the tax year. A 9% rate of self-employed NICs applied throughout.
Lower headline tax rates on self-employment than on employment aren’t justified by differences in benefits or employment rights, and are poorly targeted at improving investment incentives.