Class 2 National Insurance: what it is and how much it costs
Class 2 used to be the small flat-rate National Insurance every sole trader paid. It was never the expensive part of a self-employed bill. That is Class 4, which is a percentage of profit. Class 2 mattered because it counted towards your State Pension and some benefits.
Class 2 rates and thresholds by year
| Tax year | Weekly rate | Small profits threshold | Paid by most sole traders? |
|---|---|---|---|
| 2022-23 | £3.15 | £6,725 | Yes, on profit above £11,908 |
| 2023-24 | £3.45 | £6,725 | Yes, on profit above £12,570 |
| 2024-25 | £3.45 | £6,725 | No, treated as paid |
| 2025-26 | £3.50 | £6,845 | No, treated as paid |
| 2026-27 | £3.65 | £7,105 | No, treated as paid |
Rates and thresholds from HMRC's published National Insurance rates. Over a full year, £3.50 a week is £182 and £3.65 a week is £189.80.
In 2022-23 and 2023-24, people with profit between the small profits threshold and the Class 4 starting point already had Class 2 treated as paid. Only profits above that starting point were actually charged. From 2024-25 nobody above the small profits threshold is charged.
Do you have to pay Class 2 now?
If your self-employed profit is at or above the small profits threshold, no. You still get a qualifying year on your National Insurance record, and your SA302 shows Class 2 as £0.00.
If your profit is below the threshold, you do not have to pay anything. You can choose to pay Class 2 voluntarily, and for many people that is a good deal.
Is voluntary Class 2 worth paying?
A qualifying year counts towards your State Pension. You normally need 35 qualifying years for the full new State Pension and at least 10 to get any. If a low-profit year would otherwise leave a gap, voluntary Class 2 fills it for £182 (2025-26). The other way to fill a gap is voluntary Class 3, which is £17.75 a week for 2025-26, roughly £923 for the year. For the same qualifying year, Class 2 costs about a fifth as much.
Whether you need the year depends on your record. Some people already have 35 years, or are getting National Insurance credits another way, for example through Child Benefit for a young child. Check your National Insurance record in your HMRC account before paying for a year you may not need.
How to pay voluntary Class 2
If you file a Self Assessment return, you choose to pay voluntary Class 2 on the return and it is added to your bill for 31 January. If you are not in Self Assessment, GOV.UK has a separate service for paying voluntary Class 2.
Class 2 vs Class 4
The two are often lumped together, but they work differently. Class 4 is charged at 6% and 2% on profit above £12,570, earns you nothing extra, and is very much still charged. Class 2 is a flat weekly amount that is now rarely charged. The full comparison is in Class 2 vs Class 4 National Insurance, and you can see both lines for your own profit in the estimator.
Frequently asked questions
How much is Class 2 National Insurance?
£3.50 a week for 2025-26 (£182 a year) and £3.65 a week for 2026-27 (£189.80 a year). Most self-employed people are not charged it, because it is treated as paid when profit is above the small profits threshold.
Do I have to pay Class 2 National Insurance?
Not if your profit is at least the small profits threshold, £6,845 for 2025-26 and £7,105 for 2026-27. Below that you do not have to pay, but you can pay voluntarily to protect your State Pension record.
What is the small profits threshold?
It is the level of self-employed profit at which Class 2 is treated as paid. It is £6,725 for 2022-23 to 2024-25, £6,845 for 2025-26 and £7,105 for 2026-27.
Is it worth paying voluntary Class 2?
Often yes, if the year would otherwise be missing from your National Insurance record. It costs £182 for 2025-26, against roughly £923 for the same year through voluntary Class 3. Check your record first in case you do not need the year.
How do I pay Class 2 National Insurance?
Through your Self Assessment return, where it is added to the bill due on 31 January. If you do not file a return, GOV.UK has a separate service for paying voluntary Class 2.