What is Class 2 National Insurance?

Explanation

Class 2 National Insurance is a flat-rate contribution paid by self-employed people in the UK. For 2025/26, the rate is £3.45 per week (approximately £179 per year). You pay Class 2 NI if your self-employed profits exceed the Small Profits Threshold of £6,725. If your profits are below this threshold, you can choose to pay voluntarily to maintain your NI record and protect your entitlement to the state pension and other contributory benefits. Class 2 NI counts towards your qualifying years for the state pension — you need 35 years for the full new state pension. Class 2 contributions are paid alongside your Self Assessment tax bill, not weekly as the rate might suggest. They are calculated as part of your annual Self Assessment. Class 2 NI is separate from Class 4 NI, which is a profit-based contribution that self-employed people also pay.