Self-employed National Insurance and your State Pension: Class 2 vs Class 3

The short answer: Since April 2024, nobody has to pay Class 2. In 2026/27, profits of £7,105 or more count as Class 2 paid, so the year still counts for your State Pension. Above £12,570 you pay Class 4 at 6%, and 2% above £50,270. Below £7,105, you can choose voluntary Class 2 at £3.65 a week.

What National Insurance do self-employed people pay now Class 2 has gone?

Most self-employed people now pay just one kind: Class 4, on profits over £12,570. Class 2 is still around, though. It just works differently.

From 6 April 2024, HMRC's manual says the "liability to pay Class 2 NICs no longer exists". If your profits reach the small profits threshold, you're treated as having paid it. If they don't, you can choose voluntary Class 2 to protect your State Pension.

This is how it works in 2026/27, using GOV.UK's self-employed rates:

Figures assume you're a sole trader with no special rules and only self-employed income. Profits means your self-employed income minus your expenses.

Most people pay Class 4, and any voluntary Class 2, through Self Assessment. If your profits are under £7,105, you can choose voluntary Class 2 on your tax return. Want to know what that adds up to? Our sole trader tax planner helps you put a year's bill in one place.

Which National Insurance counts towards your State Pension?

Class 2 and Class 3 count. Class 4 doesn't, which can catch you out, because Class 4 is the one you actually see on your tax bill.

GOV.UK is clear that Class 4 contributions "do not count towards state benefits or pensions". Your record is built by Class 2, whether it's treated as paid or you pay it yourself.

GOV.UK's table shows what each class counts towards:

• Class 2 (self-employed): new State Pension, Maternity Allowance, contribution-based Employment and Support Allowance and Bereavement Support Payment.

• Class 3 (voluntary): new State Pension, but none of those three benefits.

• Class 4: none of them.

Class 2 also counts in the same way as employee contributions for the new State Pension, so a self-employed year isn't worth less than an employed one. If you have a job as well, your employer takes Class 1 from your pay and you may pay Class 4 on the side. Our guide to being employed and self-employed at the same time covers that mix.

Once you reach State Pension age, you stop paying Class 4 from the 6 April after you reach it.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

Class 2 or Class 3 voluntary NI: what's the difference?

If your profits are low, Class 2 is usually far cheaper and covers more. Class 3 costs about 5 times as much and only counts towards your State Pension.

You can pay either if you're self-employed and you have gross income of £1,000 or less, or profits under £7,105.

Full-year costs are 52 weeks at the 2026/27 rate. Older years can cost a different amount.

Some details can change the picture:

• Older years. You pay the original rate for Class 2 for the previous tax year, and for Class 3 for the previous 2 years. Anything earlier costs the 2026/27 rate.

• Paying online. The Class 3 online payment through the forecast service isn't open to self-employed people. GOV.UK points you to Class 2 instead.

• Time abroad. From 2026/27 you can't pay voluntary Class 2 for time abroad.

We can't say which suits you, because it depends on your record. The checks further down will show you what HMRC thinks.

Capital at risk. The value of your pension can go down as well as up, and you may get back less than you pay in.

Example: what a year of voluntary NI costs and what it adds

Let's take a made-up freelancer, Sam. Sam's profits were £5,000 this year, so the year won't count unless Sam pays voluntarily or gets credits.

• Voluntary Class 2: £3.65 x 52 weeks = £189.80.

• Voluntary Class 3: £18.40 x 52 weeks = £956.80.

MoneyHelper says each extra full year can add up to £6.89 a week, or £358 a year, before annual increases.

Made-up example. It ignores Income Tax and annual increases, and assumes the year adds the full amount.

So for Sam, Class 2 does the same State Pension job for about a fifth of the price. That's quite the discount.

It isn't free money, though. MoneyHelper notes that you get nothing back if you die before State Pension age, voluntary payments usually can't be refunded, and extra State Pension can cut Pension Credit or add Income Tax.

Will I get the full State Pension if I've been self-employed?

Yes, if you have enough qualifying years. Self-employed years count the same as employed ones, as long as Class 2 was paid or treated as paid.

• You need 10 qualifying years to get any new State Pension. They don't have to be in a row.

• If your record started after April 2016, you need 35 qualifying years for the full rate of £241.30 a week.

• If you were contracted out before 2016, you'll usually need more than 35.

If you worked before April 2016, DWP works out a "starting amount" from your old record. Then each qualifying year after 6 April 2016 adds to it, up to the full rate. So "I've got 35 years" isn't a safe sum for everyone.

The good news is that a missing year doesn't always matter. DWP says it's possible to have some gaps and still get the full amount. And when the time comes, you have to claim it. It doesn't arrive by itself. Our State Pension explainer covers the basics.

How do I check whether my self-employed years count?

Look at your National Insurance record. It's the surest way to see what HMRC has actually recorded for you.

1. Go to Check your National Insurance record on GOV.UK, or open the HMRC app.

2. Sign in. You may need to prove your identity, usually with photo ID like a passport or driving licence.

3. Look for years marked as not full. These are gaps that don't count as qualifying years.

4. Note what each gap would cost, and whether you can pay online. The record shows both.

5. Check your State Pension forecast. It shows how much you could get, when, and whether filling a gap would raise it.

6. Still unsure? Call the Future Pension Centre on 0800 731 0175, Monday to Friday, 8am to 6pm.

Your record shows what's been paid up to 6 April 2026, so this year won't show yet. If your profits were under £7,105 in a recent year, that's the one to look at first.

Can I top up gaps in my National Insurance record?

Usually, yes. You can pay voluntary contributions for the past 6 tax years, and the deadline is 5 April each year. For 2025/26 gaps, you have until 5 April 2032.

Before you pay anything, run through these checks:

1. Look for free credits first. If you get Universal Credit, or you're registered for Child Benefit for a child under 12, you may get Class 3 credits that fill the gap for free.

2. Ask whether credits can move to you. If your partner gets Child Benefit and already works, MoneyHelper explains that credits can sometimes be transferred.

3. Check it will help. Voluntary contributions don't always increase your State Pension, for example if you were contracted out.

4. Check whether you'll get the full amount anyway. If future working years will get you there, you don't need to think about voluntary contributions.

If you decide to pay Class 2 and you don't file Self Assessment, you register with HMRC. HMRC then sends a payment request between September and the end of October, with an 18-digit reference. Payments can take up to 8 weeks to show on your record.

Still got questions?

How do I get a Class 2 reference number? If you register to pay outside Self Assessment, HMRC's payment request includes an 18-digit reference. If it hasn't arrived by the end of November, contact the National Insurance helpline.

I'm employed and self-employed. Do I still need voluntary NI? Maybe not. Your job may already give you a qualifying year. If you earn under £129 a week from the job and your profits are under £7,105, GOV.UK suggests checking your forecast first.

Does voluntary Class 2 help with Maternity Allowance? Class 2 counts towards Maternity Allowance. Class 3 doesn't. Our guide to benefits and support for the self-employed has more.

Can I get voluntary contributions refunded? Usually not, so MoneyHelper suggests speaking to the Future Pension Centre first if you're unsure.

I reached State Pension age before April 2016. Can I top up? No. You're on the old system, and MoneyHelper says you can't boost it with voluntary contributions.

What if I'm already getting my State Pension? You can't use the online forecast. Contact the Pension Service instead.