Your Questions Answered: How do I not pay Class 2 NICs if I’m under the threshold?

Updated on November 7, 2025

Class 2 National Insurance works a little differently now. For 2025/26, Class 2 is voluntary for most people and the voluntary rate is £3.50 per week. If you’re under the relevant profit level, you don’t have to pay it — you can choose to, if you want to protect your National Insurance record. However, mid-tax return, Melissa is looking for clarity.

I'm doing my tax return and I'm a little stuck on the part where it gets to Class 2 NICs... it's telling me I have to pay more than £100 but I earnt way under the limit for self-employed income, or does it include normal employment too?! Thanks!

We’ve already established in our National Insurance post that if your self-employed income is under the small profits level for the year, you don’t have to pay Class 2. For 2025/26, the small profits level is £6,845. So why the confusion?

The amount appears in your tax return form (as Melissa is currently experiencing) because, although Melissa hasn’t met the level where Class 2 is treated as covered, she has the option to pay it voluntarily. HMRC often assumes you may want to do that to keep your NI record tidy — so if you would not like to pay it, you can simply say no to the voluntary question. If your profits are between £6,845 and £12,570, HMRC currently treats your Class 2 as covered anyway (no payment needed). If your profits are above £12,570, you won’t pay Class 2 either — you’ll just pay Class 4 (6%/2%) as part of your tax return.

How do you opt out?

At the bottom of the HMRC page there's a selection box — just select 'NO' to “would you like to pay Class 2 NICs voluntarily?” and you’re sorted!

Why would you pay voluntarily?

Well it contributes to your overall National Insurance record, which can give you access to various government benefits like State Pension and Maternity Allowance.

We’ve added your predicted National Insurance bill alongside your live tax bill information in the SansDrama Web App so you can be one step ahead and know what to expect in advance of filling out your tax return.

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