If you’re self-employed and your profits are on the lower side, you might be wondering whether it’s worth paying voluntary National Insurance contributions—especially when they’re not automatically required.
The good news is that in many cases, paying voluntary Class 2 NI can be a low-cost way to protect your State Pension entitlement. But it’s not always necessary.
Let’s break down when it’s worth paying—and when you can skip it.
What National Insurance Do the Self-Employed Pay?
For 2025/26, if your profits are above £12,570, you’ll need to pay Class 4 National Insurance. This is charged at:
- 6% on profits between £12,570 and £50,270
- 2% on profits over £50,270
These Class 4 contributions now count towards your State Pension and other benefits, meaning you’ll earn a qualifying year as long as you’re over the £12,570 threshold.
What If You Earn Less Than £12,570?
If your profits fall below £12,570, you won’t need to pay Class 4 contributions. But what happens to your pension entitlement?
Here’s where it gets interesting:
- If your profits are at least £6,845, you’ll get a National Insurance credit—so you still earn a qualifying year without paying anything.
- If your profits are below £6,845, you don’t get the credit—which means that year won’t count towards your State Pension unless you make voluntary contributions or receive NI credits from another source (e.g. Child Benefit).
Why Pay Voluntary Class 2 Contributions?
If your profits are under £6,845 and you don’t get any other credits, paying voluntary Class 2 NI can be a smart move.
For 2025/26:
- Voluntary Class 2 = £3.50 per week (£182 for the year)
- Voluntary Class 3 = £17.75 per week (£923 for the year)
That’s a £741 saving if you choose Class 2 over Class 3—and both give you a qualifying year.
But don’t pay blindly. Before making a contribution, check whether it’s actually needed.
Do You Need the Extra Qualifying Year?
Here’s the key question: Will the extra year help you get a bigger State Pension?
To receive the full State Pension, you need 35 qualifying years.
- If you already have 35 or will by the time you retire, there’s no benefit in paying extra.
- If you’ll have less than 10 even after paying, you still won’t qualify for any pension—so again, it’s not worth it.
- If the extra year will take you closer to (or above) the 10-year minimum, then yes—it’s worth paying.
You can check your record and forecast online at gov.uk/check-state-pension.
How Do You Pay Voluntary Class 2 NI?
You can make voluntary Class 2 contributions via the Self Assessment system—just ensure it’s done within six years of the relevant tax year.
Need Help Figuring It Out?
Deciding whether to pay voluntary NI isn’t always straightforward, especially if you’re unsure how many qualifying years you have or need.
Want to make sure you’re on track for the State Pension you deserve?
Get in touch with Jon or the team today—we’ll help you make the right call based on your current record and future plans.
If you found this useful, please share it using the icons at the side of the page, or leave a comment below.
Any questions?
If you’d like a meeting or a video call to discuss this, please get in touch with your favourite Liverpool accountant
- You can ring us on 0151 380 8080
- You can email us at gr****@*********************co.uk