Class 2 national insurance contributions

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

From 6 April 2024, self-employed people with profits above the small profit threshold are not be required to pay Class 2 NIC but still have access to contributory state benefits, including the state pension.

The option to voluntarily pay Class 2 NIC where profit levels are below the small profit threshold of £6,845 is available in order to allow self-employed people to obtain NIC credits, and the rate is a weekly rate of £3.50 for 2025/26 (£3.45 for 2024/25).

The Government has announced at Budget 2025 that it will remove access to pay voluntary Class 2 NIC for individuals who are aboard and will also increase the initial residency or contributions requirement to pay voluntary NIC outside of the UK to 10 years.

The commentary below therefore applies up to 5 April 2024 and to those wishing to voluntarily pay Class 2 NIC.

For Class 4 contributions, see the Class 4 national insurance contributions guidance note. For relevant types of NIC in relation to employed people, see the Overview of NIC Classes, rates and

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Class 2 national insurance contributions