Most self-employed people don't pay Class 2 National Insurance any more: if your profits are 7,105 pounds or more a year (2026 to 2027), it's treated as paid to protect your record without you paying a penny. If your profits are below that, you pay nothing unless you choose to make voluntary Class 2 contributions of 3.65 pounds a week.
Class 2 used to be the small weekly charge every self-employed person paid. That's no longer how it works, and a lot of guides online still describe the old system. Here's the current position from GOV.UK, and the one group of people who should think carefully before ignoring it.
Class 2 in one table (2026 to 2027)
| Your self-employed profits | Class 2 | Class 4 |
|---|---|---|
| Under 7,105 pounds | Nothing to pay; voluntary at 3.65 pounds a week | Nothing |
| 7,105 to 12,570 pounds | Treated as paid, nothing to pay | Nothing |
| 12,570 to 50,270 pounds | Treated as paid | 6% on profits in this band |
| Over 50,270 pounds | Treated as paid | 2% on profits above 50,270 pounds |
Why Class 2 is 'treated as paid'
GOV.UK says that once your profits reach the Small Profits Threshold, Class 2 contributions are treated as having been paid to protect your National Insurance record. That record is what helps you qualify for some benefits. So above the threshold you get the credit and don't pay the charge. The threshold has risen over the years: 6,725 pounds in 2024 to 2025, 6,845 pounds in 2025 to 2026 and 7,105 pounds in 2026 to 2027.
The catch: low profits can leave a gap
This is the part I'd want every new freelancer to know. If your profits are under the Small Profits Threshold, you don't have to pay anything, but you also don't get the automatic credit. That year can show up as a gap in your National Insurance record. If you're building a business slowly, or you've had a quiet year, that gap could matter later.
That's what voluntary Class 2 is for. At 3.65 pounds a week for 2026 to 2027, a full year works out at 52 weeks times 3.65 pounds, which is 189.80 pounds by my sum. Check your own record before deciding, because if you also have a job where National Insurance comes out of your pay, you may not have a gap at all.
How to pay voluntary Class 2
- Register for Self Assessment if you haven't already. GOV.UK says you must register to pay voluntary Class 2, even if your trading income is 1,000 pounds or less.
- Fill in your self-employment profits on your tax return.
- Choose to pay voluntary Class 2 when the return asks.
- Pay it with the rest of your Self Assessment bill.
Class 4 is the one that bites
For most people with healthy profits, Class 4 is the National Insurance that costs money. GOV.UK says you pay 6% on profits between 12,570 pounds and 50,270 pounds, and 2% on anything above. That rate was 9% back in 2023 to 2024, so older calculators will overstate it. Most people pay Class 2 and Class 4 through Self Assessment, alongside Income Tax.
Special cases
Examiners, moderators, invigilators and people who set exam questions pay a version called Special Class 4, arranged directly with the National Insurance office rather than through Self Assessment. And whatever your profits, you still need to tell HMRC when you become self-employed as a sole trader or partner.
Why the old advice is wrong
If you search for Class 2 National Insurance you'll still find guides telling you to set up a direct debit or pay a fixed weekly amount every quarter. That reflects how it used to work. Under the current rules on GOV.UK, the compulsory charge doesn't apply once your profits reach the threshold, because the contribution is treated as paid. Paying more than you need to doesn't buy you anything extra if your record is already protected.
The thresholds also change every tax year, so don't rely on a figure from an old calculator. The table above uses the 2026 to 2027 numbers from GOV.UK's rates page.
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Quick self-check
- Work out your self-employed profit: income minus allowable expenses.
- Compare it with the Small Profits Threshold for the tax year.
- Above it: you get the Class 2 credit automatically.
- Below it: check your National Insurance record and decide on voluntary Class 2.
- Above 12,570 pounds: expect Class 4 on your Self Assessment bill.
My verdict
For most self-employed people, Class 2 has become invisible: you get the credit and pay nothing. If your profits are small, look at your National Insurance record before you dismiss voluntary Class 2, because it's a cheap way to fill a gap. If you're just starting out, read my freelancer tips, and if you're applying for a home loan as a sole trader, this guide to self-employed mortgages is worth a look.
Frequently asked questions
Do I still have to pay Class 2 National Insurance?
Not if your profits are 7,105 pounds or more (2026 to 2027). GOV.UK says it's treated as paid. Below that you pay nothing unless you choose voluntary Class 2.
How much is voluntary Class 2 National Insurance?
GOV.UK lists 3.65 pounds a week for the 2026 to 2027 tax year.
What is the Small Profits Threshold?
It's 7,105 pounds for 2026 to 2027, 6,845 pounds for 2025 to 2026 and 6,725 pounds for 2024 to 2025.
How much Class 4 National Insurance do self-employed people pay?
6% on profits between 12,570 pounds and 50,270 pounds, and 2% on profits above 50,270 pounds.
Why would I pay voluntary Class 2?
GOV.UK says voluntary Class 2 helps you qualify for some benefits by protecting your National Insurance record. Above the Small Profits Threshold the contribution is treated as paid automatically.
Do I need to register to pay voluntary Class 2?
Yes. GOV.UK says you must register for Self Assessment if you want to pay voluntary Class 2, even with trading income of 1,000 pounds or less.
