National Insurance calculator

Could your self-employed clients use the difference in National Insurance contributions to help buy a protection plan?

Being your own boss is satisfying. You can make your own decisions and reap the rewards.

Your self-employed clients will also generally pay less in National Insurance contributions than someone who’s employed.

But what happens when they’re unable to work through illness or injury? How will your self-employed clients pay the bills without an income? State benefits and savings will only go so far.

One option is to use the money saved through their National Insurance contributions to pay for a protection plan. And by using our National Insurance calculator, it’s easy to show the value of these savings plus it’s one way to start the protection conversation and highlight the value of your advice.

To start, simply enter your clients name and annual net profit or income.

The calculator will give you an estimate of how much National insurance they’ll pay compared to an employed individual for a full year.

There’s also the option to print these figures in advance of a client meeting or as an output for your records should they be required.

And don’t forget Income Protection can be combined with other benefits, such as Life Cover so you can tailor a plan to suit the individual needs and budgets of your clients. Even a little bit of the right cover can help your self-employed clients protect themselves and their income.

Want more information?

See all the features of our Income Protection, or get a quote and apply for cover.

If a client is self-employed, they won't be able to rely on common employer benefits such as death-in-service cover or sick pay.

This means that without an additional plan in place, they and their family could face financial difficulty if they were to die or were unable to work through illness or injury.

However, self-employed clients' National Insurance contributions differ from employed clients - and the amount they pay is usually less. So, have they thought about using the difference to fund the protection they need to give themselves the benefits many employed clients take for granted?

And if their business is set up as a limited company, taking out a Relevant Life Plan could provide further tax savings.

Enter your self-employed client's details below for an estimate of how much less National Insurance they might pay.

Enter your client's details



Annual class 1 National Insurance**


Class 2 and 4 National Insurance**
Self-employed voluntary NI contributions**

Difference if self-employed

Including Class 3 voluntary contributions the difference is:
per annum

If your client doesn't pay Class 3 voluntary contributions the difference is:

per annum

These figures are based on the HMRC 2021/22 National Insurance rates

If your client's value is negative they don't pay any less National Insurance than an employed worker

This information is based on our current understanding of law and HM Revenue & Customs practice for the tax year 2021/22. It may be affected by future changes and individual circumstances.

Want more information?

See all the features of our Income Protection, or get a quote and apply for cover.

This website is intended for financial advisers only and shouldn't be relied upon by any other person. If you are not an adviser please visit

The Royal London Mutual Insurance Society Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. The firm is on the Financial Services Register, registration number 117672. It provides life assurance and pensions. Registered in England and Wales number 99064. Registered office: 55 Gracechurch Street, London, EC3V 0RL.