Answers · UK 2025/26

Class 2 NI abolished April 2024?

Yes. From 6 April 2024 self-employed people with profits above the Small Profits Threshold (£6,725) no longer pay Class 2 NI but still receive credits towards the State Pension and other contributory benefits. Class 4 NI on profits remains and was cut to 6% on profits between £12,570 and £50,270.

Last updated: 16 May 2026Last reviewed: 16 May 2026How we verify

Full answer

Before April 2024 the self-employed paid Class 2 at a flat £3.45 a week (£179.40 a year) on profits above the Small Profits Threshold. The March 2024 Budget abolished mandatory Class 2 entirely from 2024/25 — saving most sole traders the annual flat charge while preserving NI credits if profits are over £6,725. Profits below £6,725: you can still pay Class 2 voluntarily (£3.45 a week × 52 = £179.40 for 2024/25; rates may change annually) to protect entitlement to the State Pension, Maternity Allowance, and Bereavement benefits. This is far cheaper than Class 3 voluntary contributions (£17.45/week, £907.40/year for 2024/25). Class 4 still applies on profits: 6% between £12,570 and £50,270, 2% above £50,270 (down from 9% and 2% respectively after April 2024). Worked example: sole trader with £30,000 profit pays £30,000 − £12,570 = £17,430 × 6% = £1,046 Class 4 only — no Class 2 charge, no Class 2 credit needed because profits exceed the SPT.