Don’t Stress about no class 2 NI due
You open your tax calculation, scan the figures and spot something unexpected. Your Class 2 National Insurance payment has disappeared.
Have you missed something? Is there a mistake? And what happens to your State Pension?
Take a breath. For many sole traders, this is exactly how it should look. A change in the rules means you can protect your National Insurance record without paying a separate Class 2 charge.
Why has my Class 2 National Insurance disappeared?
From 6 April 2024, compulsory Class 2 National Insurance payments were removed for self-employed people.
So, if you were used to seeing this charge on your tax bill, its absence in 2025/26 may come as a welcome surprise.
The essential detail is your annual business profit, meaning your income after allowable business expenses.
Is my State Pension still protected?
For 2025/26, if your self-employed profits are £6,845 or more, your Class 2 National Insurance contributions are treated as paid.
That means you receive protection for your National Insurance record, helping you build entitlement to the State Pension and certain benefits, without making a separate Class 2 payment.
For 2026/27, this profit threshold increases to £7,105.
A missing Class 2 charge doesn’t automatically mean a gap in your pension record.
What if my profits are lower?
This is the detail you shouldn’t overlook.
If your profits fall below the relevant threshold, your self-employment alone won’t automatically provide Class 2 protection.
You may be able to pay voluntary Class 2 contributions to help avoid a gap in your National Insurance record.
However, you might already be covered through employment or National Insurance credits. Check your record before paying extra, so you understand whether a voluntary payment would benefit you.
Do I still pay Class 4 National Insurance?
You may do. Class 4 National Insurance continues to apply when your annual self-employed profits exceed £12,570.
For both 2025/26 and 2026/27, the rates are:
| Part of your annual profits | Class 4 rate |
|---|---|
| Up to £12,570 | 0% |
| Above £12,570 up to £50,270 | 6% |
| Above £50,270 | 2% |
These rates apply only to the slice of profit within each band.
Class 4 already existed before the Class 2 changes. It hasn’t suddenly replaced Class 2; it remains a separate contribution calculated on higher profits.
A simple example to bring you peace of mind
Imagine your sole trader business makes £10,000 profit in 2025/26.
Your profits are above the £6,845 Class 2 threshold, so your Class 2 contributions are treated as paid. They are also below the £12,570 Class 4 threshold, so you have no Class 4 payment.
You can therefore have no self-employed National Insurance bill while still receiving Class 2 protection for your record.
Income Tax is a separate calculation and depends on your overall circumstances.
Your next step: check, understand, relax
If Class 2 has disappeared from your tax calculation, there’s no need to assume something has gone wrong.
Check the tax year, your business profits and whether your contributions are being treated as paid. If your profits are below the threshold, find out whether voluntary contributions could help.
At Biking Bookkeeper, we turn confusing tax calculations into clear, practical answers. No head-scratching over mysterious figures. Just friendly support to help you feel more confident about your money.
Want clarity on your Self Assessment? Get in touch with Biking Bookkeeper.
Information relates to the 2025/26 and 2026/27 tax years. Your position may differ depending on your age and circumstances.