Self Assessment and Class 2 National Insurance
Class 2 National Insurance is a flat-rate weekly contribution paid by self-employed people. It is small in amount but important for your State Pension and benefit entitlements.
How Much Is It?
For 2026/27, Class 2 NI is £3.45 per week (£179.40 per year). It is calculated on your Self Assessment return and included in your January payment.
Who Pays It?
You pay Class 2 NI if you are self-employed and your profits exceed £12,570 per year. If your profits are below this threshold, you do not have to pay but can choose to pay voluntarily to protect your NI record.
Why It Matters
Class 2 NI contributions count towards:
- Your State Pension entitlement (you need 35 qualifying years for a full State Pension)
- Employment and Support Allowance
- Maternity Allowance
- Bereavement benefits
If you do not pay Class 2 NI and do not have enough qualifying years from employment, you may receive a reduced State Pension.
Voluntary Contributions
If your profits are below £12,570, consider paying Class 2 NI voluntarily. At £3.45 per week, it is a very cheap way to maintain your State Pension record.
How It Is Collected
Class 2 NI is calculated automatically on your Self Assessment return and added to your tax bill. You do not need to pay it separately.
Accounted includes Class 2 NI in your real-time tax estimate.
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Tax & Compliance Specialists
Our tax specialists have decades of combined experience in UK sole trader and small business taxation, MTD compliance, and HMRC submissions. All content is reviewed against current HMRC guidance before publication and updated quarterly to reflect legislative changes.
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