Tax year: 2026/27 | Last reviewed: 2 October 2026
From 6 April 2024, self-employed people no longer have to pay Class 2 National Insurance. It was a small flat-rate charge, but the change also altered how the self-employed build entitlement to the State Pension. If your profits are low, you may still want to pay it voluntarily.
What was Class 2 NI?
Class 2 was a weekly contribution paid by self-employed people with profits above the Small Profits Threshold. It was collected through Self Assessment and gave a qualifying year for the State Pension and some contributory benefits. In 2023/24 it cost £3.45 a week, or £179.40 a year.
What happens now?
- Profits above £7,105 (2026/27): you pay no Class 2, and you are treated as having paid it, so you still get a State Pension qualifying year.
- Profits below £7,105: nothing is due, but you will not get a qualifying year unless you pay voluntary Class 2 at £3.65 a week (about £190 a year) or are covered by credits from elsewhere.
Class 4 NI at 6% and 2% still applies to profits above £12,570. See Class 4 NI for 2026/27.
Is voluntary Class 2 worth paying?
Voluntary contributions can help some people fill gaps, but paying does not always increase your State Pension. Check your National Insurance record and State Pension forecast first, then ask the Future Pension Centre whether filling a particular year will improve your entitlement. Pre-April 2016 records and contracted-out periods can affect the calculation.
You may already have a qualifying year through employment or National Insurance credits, such as credits linked to eligible Child Benefit or caring responsibilities. Your forecast, rather than a simple count of years, is the starting point for deciding whether an additional payment is useful.
How to pay
Voluntary Class 2 for the current year is added to your Self Assessment tax return and collected with your tax by 31 January. For earlier years with gaps, you can pay via HMRC online or through the HMRC app. Time limits apply, so check your NI record sooner rather than later.
Who cannot pay voluntary Class 2?
You need to be self-employed, or in certain situations abroad, to pay Class 2. If you are not working at all, you would normally pay the more expensive Class 3 instead. Read the four types of National Insurance.
FAQs
Do I still pay Class 2 NI?
Not compulsorily. It is voluntary only.
Does this affect my tax return?
Only if you choose to pay voluntarily. Otherwise, Class 4 is the only NI on your self-employed profits. See NI for sole traders.
How many years do I need for the full State Pension?
The answer depends on your contribution history. People whose National Insurance record starts after April 2016 generally need 35 qualifying years for the full new State Pension. Earlier records can produce a different result. Usually at least 10 qualifying years are needed for an entitlement, but overseas and other special rules can apply. Check your individual forecast.
Talk it through with Digivolve
We flag low-profit years where voluntary Class 2 is worth paying, and add it to your tax return so it is collected with your tax.
This article is general information based on the rules for the 2026/27 tax year as at October 2026. It is not personal tax advice. Rates and thresholds can change, so please speak to us before acting.