Since 6 April 2024 nobody is liable to pay Class 2 National Insurance. Self employed people with profits at or above the small profits threshold (£7,105 for 2026 to 2027) are treated as having paid it, while those with lower profits, and a few specific groups, can pay it voluntarily at £3.65 a week. That is about a fifth of the £18.40 weekly Class 3 rate, and Class 2 also counts towards more benefits than Class 3, so eligible people normally choose it to fill a gap.

What changed in the Class 2 reforms?

HMRC’s policy paper on the Autumn Statement 2023 measures says liability to pay the weekly Class 2 flat rate was removed from 6 April 2024, while self employed people keep access to contributory benefits including the State Pension. HMRC’s National Insurance Manual (NIM70300) confirms that from 6 April 2024 the lower profits threshold was removed, so liability to pay Class 2 no longer exists.

The law now works in two parts. Section 11(5B) of the Social Security Contributions and Benefits Act 1992 treats a self employed earner whose relevant profits are at or above the small profits threshold as having actually paid a Class 2 contribution for each week of self employment in the year. Section 11(6) then lets an earner whose profits are below that threshold pay a Class 2 contribution for any week of self employment. For 2026 to 2027 the threshold is £7,105 and the voluntary amount is £3.65 a week. Relevant profits are the profits used for Class 4, explained in self employed National Insurance.

Who can still pay Class 2 voluntarily?

GOV.UK’s voluntary National Insurance guidance says a self employed person can pay Class 2 or Class 3 if they have either gross income of £1,000 or less, or gross income over £1,000 but profits below £7,105. The first group typically covers people relying on the trading allowance.

It also lists people whose Class 2 is not treated as paid but who may pay voluntarily:

  • examiners, moderators, invigilators and people who set exam questions;
  • landlords who are eligible to pay Class 2;
  • ministers of religion who do not receive a salary or stipend;
  • people who make investments for themselves or others, but not as a business and without a fee or commission.

Section 11(7) stops Class 2 being paid or treated as paid for any week before the week in which the earner turns 16 or after the week in which they reach pensionable age. Someone past State Pension age can still fill earlier gaps with Class 2 if eligible for those years.

Who cannot pay it?

GOV.UK says you cannot pay voluntary contributions if you have no gaps in your record, if you are a married woman or widow paying reduced rate contributions, or if the deadline for the year has passed. There is one exception to the no gaps rule: someone receiving Class 3 credits may still pay Class 2 if eligible. A self employed parent getting Class 3 credits through Child Benefit, for example, already has a qualifying year for the State Pension, but may pay Class 2 because Class 2 counts for other benefits.

Time abroad is now largely excluded. For the 2026 to 2027 tax year onwards GOV.UK says you cannot pay voluntary Class 2 for time abroad; Class 3 for time abroad after 5 April 2026 requires either 10 continuous years of UK residence or 10 years of qualifying contributions. Contributions for earlier years abroad can still be paid under the old rules.

Why is Class 2 better value than Class 3?

The difference is the price and what each class buys. For 2026 to 2027, GOV.UK gives the Class 2 rate as £3.65 a week and Class 3 as £18.40 a week. Over a 52 week year that is £189.80 against £956.80.

Both count towards the new State Pension. GOV.UK’s table of what National Insurance is for shows Class 2 also counts for contribution based Employment and Support Allowance, Maternity Allowance and Bereavement Support Payment, whereas Class 3 counts for State Pension purposes only. A self employed person on low profits who might later need Maternity Allowance gets more protection for a fraction of the cost.

The full new State Pension is £241.30 a week, and someone whose record started after April 2016 needs 35 qualifying years to reach it. Each year therefore adds roughly one thirty fifth of the full rate, about £6.89 a week, for such a person. Records that started earlier, or include contracted out years, work differently, so a forecast should come first.

How do you pay?

NIM70300 says those with relevant profits below the small profits threshold can choose to pay Class 2 voluntarily when completing their Self Assessment return; GOV.UK adds that most people pay Class 2 and Class 4 through Self Assessment, so the contribution is added to the Self Assessment bill. Anyone with no relevant profits, or not in Self Assessment, pays outside it.

For direct payment GOV.UK says you register with HMRC, which then sends a payment request between September and the end of October with an 18 digit reference number. Contact the National Insurance helpline if no request arrives by the end of November. Payment can be by online banking, Direct Debit, at a bank or by cheque. Someone who normally pays through Self Assessment but missed the payment deadline must contact the helpline for a reference. Payments can take up to 8 weeks to show on the National Insurance record.

How far back can you go, and at what rate?

GOV.UK says voluntary contributions can usually be paid only for the past six years, with a deadline of 5 April each year; gaps for 2025 to 2026 can be filled until 5 April 2032. Paying Class 2 for the previous tax year uses that year’s original rate. For earlier years the guidance says you pay the current 2026 to 2027 rate. Section 13 of the 1992 Act contains the separate rules for late Class 3. Check your record and State Pension forecast before paying: GOV.UK warns that voluntary contributions do not always increase the State Pension.

Illustration

Illustration only. Jo starts a craft business and in 2026 to 2027 makes a profit of £4,000, with no other earnings and no credits. No Class 4 is due because profits are below £12,570, and Class 2 is not treated as paid because profits are below £7,105, so the year would be a gap. Jo chooses to pay voluntary Class 2 when completing her return and pays £189.80 (52 weeks at £3.65) with her Self Assessment bill. The year counts towards the State Pension and Maternity Allowance. Filling the same gap with Class 3 would cost £956.80 and count for the State Pension only.

What are the common mistakes?

  • Paying Class 3 when eligible for Class 2, often because the person did not realise their low profit business makes them eligible.
  • Paying for a year that is already covered by credits or by employment earnings above the lower earnings limit. See employed and self employed at the same time.
  • Assuming voluntary Class 2 is still available while living abroad for 2026 to 2027 onwards.
  • Missing the six year window. A gap that passes its 5 April deadline is normally permanent.
  • Not registering as self employed, without which there is no self employment to pay Class 2 for.

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Sources

Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.