If you work for yourself, the State Pension can form a key part of your retirement income.
The self-employed build up entitlement for the State Pension in the same way as traditional employees, via National Insurance (NI) contributions on their annual profits.
However, NI is calculated differently for employed and self-employed people, and if there are gaps in your record, it could reduce the amount you receive when you retire.
In this short guide, we explain how NI contributions work if you’re self-employed, how to fill in any gaps, and why you should consider saving into a separate private pension to make sure you have enough to enjoy a comfortable retirement.
Self-employed NI rates – Class 4 and Class 2
If you are a sole trader or a member of a partnership, you pay NI on your annual profits when you submit your Self Assessment tax return. Your NI is calculated alongside your income tax bill:
- Class 2 – Voluntary weekly rate of £3.50 in 2025/26 if your profits are below the Small Profits Threshold (£6,845). If your profits are above this threshold, you automatically get a credit towards your State Pension entitlement for the year, even though you no longer physically pay Class 2.
- Class 4 – A percentage of your profits: 6% between £12,570 and £50,270, and 2% above £50,270. Class 4 contributions do not count towards your State Pension.
You need 35 qualifying years of NI to receive the full new State Pension (£230.25 per week, or £11,973 a year in 2025/26). You need to have at least 10 years of contributions to receive any State Pension at all.
Voluntary contributions to fill past gaps are not tied to the Self Assessment process and can usually be made at any time within HMRC’s deadlines.
Read more: How do pensions work if you’re a sole trader?
What if you have gaps in your NI record?
If you have missing years on your NI record, you can often pay voluntary contributions to fill in the gaps.
- Voluntary Class 2 (£3.50/week) – Available if you were registered as self-employed for the year in question and your profits were below the Small Profits Threshold. This is the cheapest way to protect your record.
- Class 3 (£17.75/week) – Used when you were not eligible for Class 2, for example, if you were abroad or not registered as self-employed. More expensive, so check first whether paying will increase your pension.
You do not have to wait until your next Self Assessment tax return to make voluntary payments. You can arrange to pay HMRC directly at any time, as long as you stay within the payment deadlines for the years you want to cover.
ii SIPP — from £5.99/month
A Which? Recommended pension option for the self-employed — simple, flexible, and low-cost.
Useful links:
Checking your State Pension forecast
The official Check your State Pension forecast service will show:
- Your estimated weekly amount at retirement
- How many qualifying years you already have
- Whether you can improve it by paying voluntary NI
You will need a Government Gateway account to log in.
Why the State Pension alone may not be enough
Even at the full rate, the State Pension provides you around £11,973 a year, which is well below the income many people need for a comfortable retirement.
The government has acknowledged this by reviving the Pensions Commission in 2025 to help address the shortfall, which is a particular problem for self-employed workers: Government relaunches Pensions Commission as millions of self-employed fall behind.
Read some more ByteStart guides if you want to increase your retirement income.
- It’s never too late to start saving for a pension if you’re self-employed
- How much do you need to save for retirement if you’re self-employed?
Examples
Example 1 – Low profits year
Amir is self-employed and makes £5,000 profit in 2025/26. This is below the Small Profits Threshold of £6,845. He is not automatically credited with NI, so to protect his record, he pays voluntary Class 2 contributions @ £3.50 a week for 52 weeks (£182 total).
Example 2 – Profits just above the threshold
Claire earns £7,200 profit. She does not pay Class 2 physically, but HMRC credits her NI record automatically because her annual profits are above the £6,845 threshold.
Example 3 – Gap from years abroad
Dan worked overseas for three years and was not registered as self-employed in the UK. To fill those gaps, HMRC tells him he must pay Class 3 contributions at £17.75 per week. Before paying, he checks his forecast to confirm this will boost his State Pension.
NI Class comparison
| NI Class | Weekly cost (2025/26) | When to pay | Counts towards State Pension? |
|---|---|---|---|
| Class 2 (voluntary) | £3.50 | Self-employed, profits under £6,845 | Yes |
| Class 2 (credited) | £0 | Self-employed, profits above £6,845 | Yes |
| Class 3 | £17.75 | Not eligible for Class 2 | Yes |
| Class 4 | 6% / 2% of profits | On profits above £12,570 | No |
FAQ
Do Class 4 contributions help my State Pension?
No. Class 4 NI is charged on self-employed profits but does not count towards your State Pension. Only Class 1, Class 2, and NI credits build entitlement.
Can I get NI credits without paying?
Yes. You can get NI credits if you receive certain benefits or meet specific criteria, such as claiming Child Benefit for a child under 12, receiving Carer’s Allowance, being on some unemployment or sickness benefits, or providing informal childcare for a grandchild.
How far back can I fill gaps in my record?
Normally, you can pay voluntary NI for the past six tax years. This resets each 6 April. The one-off extension, which allowed payments back to 2006, ended on 5 April 2025.
What happens if I don’t have 35 qualifying years?
You will still get a reduced State Pension if you have at least 10 qualifying years. Less than 10 indicates no entitlement under the new State Pension rules.
What is the State Pension age and is it changing?
The State Pension age is currently 66. It is expected to rise to 67 between 2026 and 2028, and future reviews may further increase it. You can check your own State Pension age online.
Does time spent working abroad count towards my UK State Pension?
It can, if you worked in a country with a social security agreement with the UK or in certain EU countries. Your contributions may be combined to help you qualify, and you may receive partial payments from each country.
If I pay voluntary NI late, will it still count?
Yes, if you pay within HMRC’s deadlines for that tax year. Late payments after the cut-off may be refused, so check before sending money.
What if I take time off work for childcare or caring?
You may receive automatic NI credits through Child Benefit (for a child under 12) or Carer’s Allowance. If you missed credits, you may be able to apply to have them backdated in some cases.
How often should I check my NI record?
Check your NI record every 2–3 years, or sooner if your profits are below the Small Profits Threshold or you’ve had a change in work status. This helps you fix issues early.
What are the current voluntary NI rates?
For 2025/26, the weekly rates are £3.50 for Class 2 and £17.75 for Class 3.