What is National Insurance Class 2 and Class 4?

Self-employed individuals pay two classes of National Insurance. Class 2 was a flat weekly contribution (£3.45 per week in 2023/24) that built entitlement to the State Pension and contributory benefits; from April 2024 Class 2 was effectively abolished for those with profits above the small profits threshold, with State Pension entitlement instead credited automatically via Self Assessment. Class 4 is a percentage of profits between the lower profits limit and upper profits limit, set at 6% in 2024/25 (reduced from 9% in April 2024). Those with profits below the small profits threshold can pay voluntary Class 3 contributions to protect their State Pension record.