The short version: Class 2 National Insurance used to be a flat weekly amount paid by self employed people. But it’s been scrapped as a compulsory payment.
What changed?
Self employed people no longer have to pay Class 2. If your profits are above the threshold, you pay Class 4 instead. Below the threshold, you don’t have to pay anything.
Can I still pay it voluntarily?
Yes. If your earnings are low and you want to protect your State Pension entitlement, you can choose to pay Class 2 contributions voluntarily. It’s a relatively cheap way to fill gaps in your NI record.
Should I pay voluntarily?
It depends on your situation. If you’re not earning much from self employment but want to keep your State Pension on track, voluntary Class 2 could be worth it. If you’re already paying enough NI through employment or Class 4, you probably don’t need to.
Not sure whether voluntary contributions make sense for you? Ask us and we’ll help you decide.
