What is Class 2 National Insurance for the self-employed in 2026/27?

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Class 2 National Insurance is the flat-rate NI contribution historically paid by self-employed people to build up their qualifying years for the State Pension and certain contributory benefits, separate from Class 4 NI (which is profit-based). **The current rate** For 2026/27, the Class 2 rate is £3.65 per week -- but crucially, most self-employed people do not actually pay this amount out of pocket any more. **The 2024 reform** From 6 April 2024, the government abolished the requirement for self-employed people with profits at or above the Small Profits Threshold (£7,105 for 2026/27) to pay Class 2 NI at all. Instead, they get their qualifying year automatically treated as paid, with no cash outlay -- protecting their State Pension record without any monthly or annual cost. **Below the Small Profits Threshold** If your self-employed profits are below £7,105 in 2026/27, you do not get an automatic qualifying year. However, you can still choose to pay Class 2 NI voluntarily at £3.65/week (£189.80 for a full year) to protect your State Pension and access to contributory benefits such as Maternity Allowance and contribution-based Employment and Support Allowance. This is usually much cheaper than paying voluntary Class 3 NI (£18.40/week, £956.80/year) to fill the same gap, making voluntary Class 2 an excellent-value option for low-profit self-employed workers. **Worked example** Emma runs a small craft business with £4,500 profit in 2026/27 -- below the £7,105 threshold. Without action, she gets no qualifying year for that tax year. She chooses to pay voluntary Class 2 NI: 52 weeks x £3.65 = £189.80. This single payment secures a full qualifying year towards her State Pension, adding roughly £6.89/week (£358/year) to her eventual pension for life -- a payback in well under a year of retirement. **How it is paid** Class 2 NI (whether automatically credited or paid voluntarily) is collected through the Self Assessment system, calculated and reported on your annual tax return, alongside Class 4 NI and Income Tax on your self-employed profits. **Why this matters for benefits, not just pension** Beyond the State Pension, having Class 2 NI credited or paid also protects entitlement to Maternity Allowance for self-employed women (who cannot claim Statutory Maternity Pay) and certain bereavement benefits -- so even those with very low profits should consider paying voluntarily if they might need these in future.

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