Class 2 national insurance contributions

Copyright © 2026 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance

Class 2 national insurance contributions

Copyright © 2026 LexisNexis
Produced by a Tolley Owner-Managed Businesses expert
Owner-Managed Businesses
Guidance
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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).

It was announced at Budget 2025 that the ability for non-UK residents to pay voluntary Class 2 contributions for periods abroad will be removed from 6 April 2026. This means the 2025/26 tax year is the last in which non-UK residents can pay voluntary Class 2 NIC (rather than Class 3 NIC) for time spent abroad. In addition, from 6 April 2026, new non-UK resident applicants seeking to make voluntary Class 3 contributions from abroad will need to have lived in the UK for 10 consecutive years or have made UK national insurance contributions for 10 years,

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  • 22 Jan 2026 12:31

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