Key facts
- Class 2 NI costs £3.45 per week (£179.40 per year) in 2025/26.
- It is compulsory if your self-employment profits exceed the Small Profits Threshold of £6,845.
- If your profits are below £6,845, you can pay voluntarily to protect your State Pension record.
- Class 2 is collected through Self Assessment alongside your Income Tax and Class 4 NI.
How Class 2 NI Works for Self-Employed
Class 2 National Insurance is a flat-rate weekly contribution paid by self-employed people. Unlike Class 4 NI (which is a percentage of profits), Class 2 is a fixed amount regardless of how much you earn.[1]
Its primary purpose is to build your entitlement to the State Pension and contributory benefits. At just £3.45 per week, it is by far the cheapest way to secure a qualifying year.
Class 2 Rates and Thresholds (2025/26)
| Detail | 2025/26 Amount |
|---|---|
| Weekly rate | £3.45 |
| Annual cost (52 weeks) | £179.40 |
| Small Profits Threshold (SPT) | £6,845 |
Who Pays Class 2 NI?
Class 2 NI is compulsory for self-employed individuals whose profits exceed the Small Profits Threshold of £6,845 per year. This includes:[1]
- Sole traders
- Partners in a business partnership
- Members of a limited liability partnership (LLP) treated as self-employed
You start paying Class 2 from the date you begin self-employment, not from the start of the tax year.
The Small Profits Threshold
If your self-employment profits are below the Small Profits Threshold (£6,845 in 2025/26), you are not required to pay Class 2 NI. However, you are strongly encouraged to consider paying voluntarily.[2]
Why pay voluntarily? At £3.45 per week (£179.40/year), Class 2 is an exceptionally cheap way to secure a qualifying year for the State Pension. Compare this to voluntary Class 3 at £17.75 per week (£923/year). If your profits are below the SPT, paying voluntary Class 2 is almost always worthwhile.
How Class 2 NI Is Paid
Class 2 NI is calculated and collected through Self Assessment:[1]
- It is added to your Self Assessment tax bill alongside Income Tax and Class 4 NI
- The deadline is 31 January following the end of the tax year
- It is included in your payments on account if applicable
- Under MTD for Income Tax, Class 2 will be calculated as part of the final declaration
What Benefits Does Class 2 Provide?
Paying Class 2 NI builds your entitlement to:[3]
| Benefit | Class 2 Counts? |
|---|---|
| New State Pension | Yes — each year of Class 2 is a qualifying year |
| Maternity Allowance | Yes |
| Contributory ESA | Yes |
| Bereavement benefits | Yes |
| Contributory JSA | No — only Class 1 counts |
Recent Class 2 Rate History
| Tax Year | Weekly Rate | Small Profits Threshold |
|---|---|---|
| 2025/26 | £3.45 | £6,845 |
| 2024/25 | £3.45 | £6,725 |
| 2023/24 | £3.45 | £6,725 |
| 2022/23 | £3.15 | £6,725 |
| 2021/22 | £3.05 | £6,515 |
Class 2 vs Class 3: Which Is Better?
Both Class 2 and Class 3 build qualifying years for the State Pension. The key differences are:
| Feature | Class 2 | Class 3 |
|---|---|---|
| Cost per week | £3.45 | £17.75 |
| Annual cost | £179.40 | £923 |
| Who can pay | Self-employed only | Anyone |
| Maternity Allowance | Yes | No |
| Contributory ESA | Yes | No |
Bottom line: If you are self-employed and eligible for voluntary Class 2, always choose Class 2 over Class 3. It is cheaper and provides broader benefit entitlement.
Frequently Asked Questions
How much is Class 2 National Insurance?
Class 2 NI is £3.45 per week in 2025/26, which works out to approximately £179.40 for the full year. It is a flat rate — the amount does not change regardless of how much profit you make.
What is the Small Profits Threshold?
The Small Profits Threshold (SPT) is £6,845 for 2025/26. If your self-employment profits are below this level, you are not required to pay Class 2 NI. However, you can choose to pay voluntarily to ensure you get a qualifying year for the State Pension.
When do I pay Class 2 NI?
Class 2 NI is calculated and collected as part of your Self Assessment tax return (or MTD final declaration). It is included in your 31 January tax bill and forms part of any payments on account. You do not pay it separately.
Does Class 2 NI count towards my State Pension?
Yes. Class 2 NI counts towards your qualifying years for the State Pension. It also provides entitlement to Maternity Allowance, contributory ESA, and bereavement benefits. At £3.45 per week, it is the cheapest route to a qualifying year.
Further Reading
- Class 4 NI: Rates & Thresholds — profits-based NI for the self-employed
- Voluntary Class 2 Contributions — paying voluntarily when profits are low
- Paying NI Through Self Assessment — how Class 2 and 4 are collected
- NI and the State Pension — how NI builds your pension
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