What is Class 2 National Insurance?
A flat-rate NI contribution paid by self-employed people — £3.45 per week in 2025/26.
Key Facts
- ✓ Flat rate: £3.45 per week (£179.40 per year) in 2025/26
- ✓ Paid by self-employed with profits above £6,725
- ✓ Counts towards state pension qualifying years
- ✓ Paid through Self Assessment, not weekly
- ✓ Voluntary payment below threshold to protect pension
- ✓ Separate from Class 4 NI (profit-based)
Current Rates (2025/26)
- ▸ Rate: £3.45 per week
- ▸ Annual: approximately £179
- ▸ Small Profits Threshold: £6,725
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.
Try the calculator: Use our free calculator to see how class 2 national insurance affects your finances.
Self-Employed Tax Calculator →Other Glossary Terms
The system HMRC uses to collect income tax and National Insurance directly from employee wages.
National InsuranceA UK tax on earnings and self-employed profits that funds the state pension, NHS, and benefits.
Personal AllowanceThe amount of income you can earn each year before paying income tax — currently £12,570.
Basic Rate (20%)The 20% income tax rate applied to taxable income between £12,571 and £50,270.
Higher Rate (40%)The 40% income tax rate applied to taxable income between £50,271 and £125,140.
Additional Rate (45%)The 45% income tax rate applied to taxable income above £125,140.
Frequently Asked Questions
What does class 2 national insurance mean?
A flat-rate NI contribution paid by self-employed people — £3.45 per week in 2025/26.
Why does class 2 national insurance matter?
Understanding class 2 national insurance helps you make informed financial decisions and ensure you pay the correct amount of tax. Getting it wrong could mean overpaying or underpaying HMRC, which may result in penalties or missed savings. Use our calculators to see how class 2 national insurance applies to your personal situation.
Where can I find more information about class 2 national insurance?
HMRC publishes official guidance on GOV.UK for all UK tax topics. For a quick overview, our glossary entries are written in plain English and updated each tax year. You can also use our free online calculators to model different scenarios and understand how changes to your income, deductions, or allowances affect your overall tax position.