Class 2 NI Abolished: What Self-Employed People Need to Know in 2026
Class 2 National Insurance was abolished from April 2024. Here is what that means for self-employed people in 2026/27 — State Pension credits, Class 4 rates, voluntary Class 3 contributions, and how to check your NI record.
What was Class 2 National Insurance?
For decades, self-employed people in the UK paid a flat weekly Class 2 National Insurance contribution. In 2023/24 — the final year it applied — the rate was £3.45/week, due for every week of the year in which profits exceeded the Small Profits Threshold. Annual cost: £179.40.
Class 2 NI served two purposes:
- It was a modest revenue contribution to the National Insurance Fund.
- More importantly, it generated qualifying years for the State Pension and other contributory benefits (Employment and Support Allowance, Maternity Allowance, etc.).
From 6 April 2024, Class 2 was abolished as part of the Spring Budget 2024 reforms. Self-employed people filing Self Assessment for 2024/25 and beyond no longer see a Class 2 charge.
What replaced Class 2 for State Pension credits?
The abolition created an obvious concern: if Class 2 was abolished, would self-employed people lose their State Pension credits?
HMRC addressed this by making NI credits automatic for self-employed people with profits above the Small Profits Threshold (SPT):
| Year | SPT | Result |
|---|---|---|
| 2026/27 | £7,105 | Profits ≥ £7,105 → automatic NI credit (qualifying year) |
| 2026/27 | Below £7,105 | No automatic credit — must pay voluntary Class 3 or accept a gap |
In practice, if you file a Self Assessment return showing self-employed profits of £7,105 or more, HMRC treats the year as a qualifying year for State Pension purposes without you paying a separate Class 2 charge. This is simpler and costs nothing extra.
Self-Employed Tax Calculator
Calculate income tax, Class 2 and Class 4 National Insurance for self-employed and sole traders for 2025/26.
Open Self-Employed Tax calculatorClass 4 NI — unchanged for 2026/27
While Class 2 was abolished, Class 4 NI continues and is the main NI charge on self-employed profits. The rates for 2026/27 are:
| Band | Rate |
|---|---|
| Profits up to £12,570 (Lower Profits Limit) | 0% |
| Profits £12,570 to £50,270 | 6% |
| Profits above £50,270 | 2% |
Worked example — freelancer with £45,000 net profit:
| Element | Calculation | Amount |
|---|---|---|
| Profit above Lower Profits Limit | £45,000 − £12,570 | £32,430 |
| Class 4 NI at 6% | 6% × £32,430 | £1,945.80 |
| Class 4 above upper limit | £0 (profit < £50,270) | £0 |
| Total Class 4 NI | £1,945.80 |
Note that Class 4 NI is a tax on profits — it does not generate State Pension credits or benefit entitlements. Those are handled separately by the automatic credit system (above).
Freelancer with £75,000 net profit:
| Band | Rate | NI due |
|---|---|---|
| £12,570–£50,270 = £37,700 | 6% | £2,262 |
| £50,270–£75,000 = £24,730 | 2% | £494.60 |
| Total Class 4 | £2,756.60 |
National Insurance Calculator
Calculate your National Insurance contributions for 2025/26.
National Insurance calculatorVoluntary Class 3 — filling gaps in your NI record
If your self-employed profits fall below the £7,105 SPT in any year, that year will not automatically count as a qualifying year. You can plug the gap by paying voluntary Class 3 NI:
| 2026/27 rate | Weekly | Annual |
|---|---|---|
| Class 3 (voluntary) | £18.40 | £956.80 |
Is it worth paying?
Each qualifying year adds 1/35th of the full State Pension to your annual entitlement. In 2026/27 the full State Pension is £241.30/week (£12,548/year). So:
- Value of one qualifying year: £12,548 ÷ 35 = £358.51/year of State Pension.
- Cost of buying one year: £956.80.
- Break-even: £956.80 ÷ £358.51 = 2.67 years after State Pension Age.
Given that average life expectancy at SPA is around 20 years, voluntary Class 3 is almost always excellent value — a return of roughly 7× your investment over a typical retirement.
Who should consider Class 3?
- Self-employed people in years when profits are low (start-up period, illness, parental responsibility).
- People who took time out of the workforce and did not receive NI credits through Child Benefit or other routes.
- Anyone approaching State Pension Age with fewer than 35 qualifying years.
The 6-year lookback rule (from April 2025)
From April 2025, HMRC's voluntary NI window reverted to the standard 6-year lookback: you can only fill gaps from 2020/21 onwards. The extended window allowing top-ups to 2006/07 closed permanently in April 2025. If you missed that window, those earlier gaps cannot now be filled.
For 2026/27, the years available to fill are: 2020/21, 2021/22, 2022/23, 2023/24, 2024/25, 2025/26 — plus the current 2026/27 year.
How to check your NI record
HMRC's online service gives you a full view of your NI history and State Pension forecast:
- Go to gov.uk/check-national-insurance-record.
- Sign in with your Government Gateway account (or create one — you need your National Insurance number and proof of identity).
- You will see:
- A year-by-year list of qualifying years (Full/Partial/Gap).
- Your current State Pension forecast (the amount you would get if you stopped contributing today, and the amount at full 35-year entitlement).
- Any gaps that can currently be filled and the cost to fill each one.
It is worth checking this record every few years, particularly around career changes, periods of self-employment, or time taken out for childcare.
State Pension Forecast Calculator
Forecast your UK State Pension based on qualifying NI years and model the impact of filling gap years with voluntary Class 3.
State Pension forecast calculatorState Pension overview — 2026/27
The full new State Pension for 2026/27 is £241.30/week (£12,548/year), uprated under the Triple Lock (which applied wages growth of +4.8% for 2026/27).
| Qualifying years | State Pension |
|---|---|
| Fewer than 10 | £0 (no entitlement) |
| 10 years | £68.94/week (28.6% of full) |
| 20 years | £137.89/week (57.1%) |
| 30 years | £206.83/week (85.7%) |
| 35 years (full) | £241.30/week |
State Pension Age is currently 66 for both men and women. Under current legislation it will rise to 67 between 2026 and 2028, and to 68 during the mid-2040s (though the timeline for the 68 increase has been debated and is subject to review).
Contributory benefits still linked to NI
The automatic credit system for profits above the SPT provides a qualifying year for:
- New State Pension
- Contributory Employment and Support Allowance (ESA) — requires two full NI contribution years in the last three tax years
- Maternity Allowance — requires 26 weeks in the 66 weeks before the baby is due, with average weekly earnings above £30
- Bereavement benefits
Class 4 NI does not count toward any of these benefits — that is the key asymmetry that makes understanding the credit system important.
Summary for self-employed taxpayers in 2026/27
| Question | Answer |
|---|---|
| Do I pay Class 2 NI? | No — abolished April 2024 |
| Do I get State Pension credits? | Yes, if profits ≥ £7,105 |
| What NI do I pay? | Class 4: 6% (£12,570–£50,270), 2% above |
| Can I fill NI gaps? | Yes — back to 2020/21 only |
| Cost to fill a gap year | £956.80 (Class 3) |
| Full State Pension | £241.30/week (35 years) |
Sources
Frequently asked questions
When was Class 2 National Insurance abolished?
Class 2 NI was abolished from 6 April 2024. Self-employed people no longer pay the flat weekly charge (previously £3.45/week for 2023/24).
Do I still get State Pension credits if I don't pay Class 2 NI?
Yes. From April 2024, self-employed people with profits above the Small Profits Threshold (£7,105 for 2026/27) automatically receive National Insurance credits that count toward State Pension and certain contributory benefits — without paying Class 2.
What happens if my self-employed profits are below £7,105?
If your profits fall below the Small Profits Threshold of £7,105 in 2026/27, you do not automatically receive NI credits. You can plug the gap by paying voluntary Class 3 contributions at £18.40/week (£956.80/year).
What are the Class 4 NI rates for 2026/27?
Class 4 NI is unchanged: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 4 is profit-based and paid through Self Assessment — it does not count toward State Pension credits (only Class 2 credits did that).
How many qualifying years do I need for the full State Pension?
You need 35 qualifying years for the full new State Pension of £241.30/week. You need a minimum of 10 qualifying years to receive any State Pension at all.
How much does voluntary Class 3 NI cost and is it worth it?
Voluntary Class 3 contributions cost £18.40/week (£956.80/year) for 2026/27. Each year purchased adds 1/35th of the full State Pension (about £364/year). The break-even point is approximately 2.6 years after State Pension Age — making it very cost-effective for most people.
How far back can I pay voluntary NI to fill gaps?
From April 2025 onward, HMRC operates a 6-year lookback window. You can fill gaps going back to the 2020/21 tax year. Gaps before 2020/21 are no longer fillable (the extended deadline to 2006/07 closed in April 2025).
How do I check my National Insurance record?
Visit gov.uk/check-national-insurance-record and log in with your Government Gateway account. You will see a full list of qualifying years, gaps, and your current forecast State Pension amount.
Does Class 4 NI count toward State Pension entitlement?
No. Class 4 NI is purely a tax on self-employed profits. It does not generate any National Insurance credits or count toward State Pension, contributory ESA, or maternity/paternity pay entitlements. Those credits come (post-abolition) from the automatic credit system for profits above the Small Profits Threshold.
I'm self-employed part-time alongside employment — how does this affect my NI?
As an employee you pay Class 1 NI on your employment earnings, which build State Pension credits. If your self-employed profits also exceed £7,105 in 2026/27, you will also receive the automatic Class 2 equivalent credit, but NI is capped so you won't over-pay. Class 4 applies only to self-employed profits and is separate.
Try the calculators
National Insurance Calculator
Calculate your National Insurance contributions for 2025/26.
Self-Employed Tax Calculator
Calculate income tax, Class 2 and Class 4 National Insurance for self-employed and sole traders for 2025/26.
State Pension Forecast Calculator
Forecast your UK State Pension based on qualifying NI years and model the impact of filling gap years with voluntary Class 3.
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