Self-employed people in the UK usually pay two types of National Insurance: Class 2 and Class 4. If you are a freelancer, sole trader or small business owner, both are handled through Self Assessment, although whether you pay them depends on your profits and National Insurance thresholds. Class 2 NI builds your State Pension entitlement; Class 4 NI contributes to the NHS. Neither entitles you to Job Seekers' Allowance.
Quick answers
- Class 2 National Insurance: Class 2 NI changed significantly in 2024, but self-employed individuals and any self-employed person generally still pay national insurance contributions from age 16 until they reach state pension age.
- Class 4 National Insurance: Class 4 NI is charged on your taxable profit, meaning your self employment profits after allowable business expenses are deducted.
- How to pay Class 4 NI: Class 4 NI is worked out through your self assessment tax return, with the amount due shown on your tax return as part of your self assessment tax calculation, so self employed people pay it based on their profits rather than separately.
- Does NI count towards State Pension: You generally need at least 10 qualifying years to receive any State Pension and usually 35 qualifying years for the full new State Pension (£221.20 per week in 2025/26).
- Gaps in your NI record: If you have gaps in your NI record, you may be able to pay voluntary contributions to fill gaps in it and help avoid gaps that could reduce your State Pension entitlement.
This guide explains when Class 2 and Class 4 apply, recent changes to Class 2, how payments work, what lower earnings mean for your NI record, and when voluntary contributions may help you fill gaps. Understanding these rules helps you stay compliant and protect your future State Pension by avoiding missing years in your National Insurance record.
Class 2 National Insurance
Class 2 NI changed significantly in 2024, but self-employed individuals and any self-employed person generally still pay national insurance contributions from age 16 until they reach state pension age. From the 2024/25 tax year, you no longer pay a separate Class 2 NI charge. However, if your annual profits are above the Small Profits Threshold (£7,105 for the 2026/27 tax year), you automatically receive class 2 contributions, also called class 2 nics, as part of your Self Assessment. This is how national insurance works for self employment and it preserves your national insurance record for the State Pension at no extra cost.
If your profits are below £7,105, you may need to pay class 2 NI voluntarily at £3.45 per week (2025/26) if you want to avoid gaps in your record. Most self employed people above the threshold are treated as having paid, while those below it can pay voluntarily through Self Assessment if they need to pay and want to protect qualifying years. You can also pay voluntary class 2 contributions if you need to pay class amounts to keep access to state benefits and other contributory benefits. This can help protect entitlement to certain benefits, including maternity allowance, because you must pay Class 2 NICs to qualify for maternity allowance.
Class 4 National Insurance
Class 4 NI is charged on your taxable profit, meaning your self employment profits after allowable business expenses are deducted.
Class 4 NICs apply once your trading profits go over £12,570, and the main rate is 6% between £12,570 and £50,270.
| Profit band (2025/26) | Class 4 NI rate |
|---|---|
| Below £12,570 | 0% |
| £12,570 to £50,270 | 6% |
| Above £50,270 | 2% |
How to pay Class 4 NI
Class 4 NI is worked out through your self assessment tax return, with the amount due shown on your tax return as part of your self assessment tax calculation, so self employed people pay it based on their profits rather than separately.
To pay National Insurance contributions correctly, you must register with HMRC for Self Assessment, as HMRC uses the assessment tax return to calculate what you owe and may send a payment request in limited cases.
You pay national insurance through your self assessment tax return by 31 January after the end of the tax year, and self employed people pay any July payments on account alongside Income Tax where required.
Does NI count towards State Pension?
You generally need at least 10 qualifying years to receive any State Pension and usually 35 qualifying years for the full new State Pension (£221.20 per week in 2025/26). A qualifying year requires contributions at or above the Class 2 threshold. Check your national insurance record online through your Personal Tax Account on GOV.UK. Your NI record across your working life affects what you can claim, and National Insurance credits may help protect a qualifying year.
Gaps in your NI record
If you have gaps in your NI record, you may be able to pay voluntary contributions to fill gaps in it and help avoid gaps that could reduce your State Pension entitlement. This may include Class 3 NI contributions (£17.45 per week in 2025/26). This is usually worth doing if you are within 15 years of State Pension age. Use HMRC's online checker to review your national insurance record online through your Personal Tax Account before deciding whether to pay voluntary contributions. Eligible self-employed people may be able to pay cheaper voluntary Class 2 instead of Class 3 to fill gaps in their record.
NI credits when earning below the threshold
If your profits are between £6,725 and £12,570, you receive NI credits towards your State Pension even though you pay no Class 4 NI. This is an important protection for lower-earning self-employed people.