Voluntary Class 2 NIC 2025/26: protecting your State Pension as a low earner
Summary
Updated May 2026 — Sources: GOV.UK National Insurance, HMRC CA5601.
Class 2 NIC was reinstated for 2025/26 at £3.45/week for profits above £12,570. Below that threshold, voluntary payment protects your State Pension record at a fraction of the Class 3 cost.
1. Why qualifying years matter
The new State Pension requires 35 qualifying years for the full amount (currently £221.20/week). Each year you fail to accumulate a qualifying year reduces your eventual pension. Self-employed workers need Class 2 or Class 4 NIC to earn a qualifying year.
2. Voluntary vs automatic Class 2
| Profit level | Class 2 status | Cost |
|---|---|---|
| Above £12,570 | Automatic (compulsory) | £179.40/year |
| Below £12,570 | Voluntary (opt-in) | £179.40/year |
| Below £12,570, no voluntary | No qualifying year | £0 |
3. Class 2 vs Class 3 comparison
Voluntary Class 2: £179.40/year. Voluntary Class 3 (for gaps in other years): £912.60/year. Paying Class 2 during low-profit years is five times cheaper than filling gaps later with Class 3.
4. When voluntary payment makes sense
- You are building a business and expect profits to rise later
- You are within 10 years of State Pension age and short on qualifying years
- Your profits are £6,000–£12,570 (above the Small Profits Threshold for credits but below compulsory Class 2)
5. Sources
FAQ
When should I pay Class 2 NIC voluntarily?
When your self-employed profits are below £12,570 and you want to maintain a qualifying year for State Pension. You need 35 qualifying years for the full new State Pension.
How much does voluntary Class 2 cost?
£3.45 per week, totalling £179.40 per year. This is significantly cheaper than buying missing years through voluntary Class 3 contributions at £17.55/week.
How do I pay voluntary Class 2?
Through your Self Assessment tax return. Tick the box to pay Class 2 voluntarily. Payment is due with your balancing payment by 31 January following the tax year.