What is Class 2 National Insurance? UK Definition 2026/27
Quick Answer
Flat-rate NI for self-employed, £3.45/week if profits exceed £6,845.
Definition of Class 2 National Insurance
Class 2 National Insurance is a flat-rate contribution paid by self-employed individuals. Its £3.45 per week (£179.40 per year) for 2026/27 if profits exceed £6,845. Class 2 builds entitlement to State Pension and some benefits. Those with profits below the threshold can pay voluntarily to protect entitlements.
Class 2 National Insurance — Key Facts for 2026/27
| Weekly rate | £3.45 |
| Annual cost | £179.40 |
| Small profits threshold | £6,845 |
| Voluntary payment | Allowed below threshold |
How Class 2 National Insurance Works — Example
- 1Self-employed profit: £35,000
- 2Above small profits threshold: Yes
- 3Class 2 NI due: 52 x £3.45 = £179.40
- 4Paid with Self Assessment
- 5Builds one qualifying year for State Pension
How Class 2 National Insurance Affects Your Tax
Class 2 NI is relatively cheap and provides valuable State Pension qualification. If your profits are low, consider paying voluntarily to avoid gaps in your NI record.
Official HMRC Guidance on Class 2 National Insurance
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: Self-employed NI ratesFrequently Asked Questions about Class 2 National Insurance
Related Tax Terms
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.