If you work for yourself, the State Pension can form a key part of your retirement income.
The self-employed build up State Pension entitlement through National Insurance contributions or credits, but the way these are applied differs from employees.
However, gaps in your National Insurance record could reduce the amount you receive in retirement.
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.
A SIPP gives self-employed savers greater control over their investments, although it will not suit everyone.
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 £3.65 in 2026/27 if your profits are below the Small Profits Threshold (£7,105). If your profits are at least £7,105, Class 2 is treated as having been paid for the year, so your NI record is protected even though you do not actually pay it.
- 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 normally need at least 10 qualifying years on your NI record to receive any new State Pension.
If your National Insurance record started after April 2016, you will normally need 35 qualifying years to receive the full new State Pension. The calculation may differ if you built up NI contributions before April 2016.
The full new State Pension is £241.30 per week in 2026/27.
Voluntary contributions to fill past gaps aren’t tied to the Self Assessment process and can usually be made within HMRC’s payment 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 may be able to pay voluntary contributions to fill in the gaps.
- Voluntary Class 2 (£3.65/week) – If you were self-employed and meet HMRC’s eligibility rules, you may be able to pay voluntary Class 2 for a year in which your profits were below the Small Profits Threshold. This is considerably cheaper than Class 3.
- Class 3 (£18.40/week) – Often used where Class 2 is not available. It is more expensive, so check first whether filling the gap will actually increase your State Pension.
You do not have to wait until your next Self Assessment tax return to make voluntary payments.
Normally, you can pay voluntary NI only for the previous six tax years. Before paying anything, check your NI record and State Pension forecast, because filling a gap does not always increase the pension you will receive.
Useful links:
Checking your State Pension forecast
The official Check your State Pension forecast service will show:
- Your estimated State Pension at retirement
- How many qualifying years you already have
- Whether you may be able to improve your pension by adding further qualifying years
You can check your National Insurance record online to see which individual tax years are complete and whether there are any gaps.
Why the State Pension alone may not be enough
Even at the full rate, the State Pension provides around £12,548 a year in 2026/27, which is well below the income many people will want in retirement.
The government revived the Pensions Commission in 2025 to examine retirement provision, with pension saving among the self-employed one of the areas of concern: 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?
- How pension tax relief works for the self-employed
Examples
Example 1 – Low profits year
Jon is self-employed and makes £5,000 profit in 2026/27. This is below the Small Profits Threshold of £7,105, so he does not automatically qualify for a year through his self-employment.
If he is eligible to pay voluntary Class 2, he can pay £3.65 a week. Over 52 weeks, that would cost £189.80.
Example 2 – Profits just above the threshold
Claire earns £7,200 profit. She does not pay Class 2 NI directly, but Class 2 is treated as having been paid because her annual profits are above the £7,105 Small Profits Threshold.
Example 3 – Gap from years abroad
Dan worked overseas for three years and has gaps in his UK NI record. Before making voluntary contributions, he checks his State Pension forecast to find out whether filling those years would increase the amount he receives.
The rules for people who have lived or worked abroad depend on the country involved and their circumstances, so he checks the position with HMRC before paying.
NI Class comparison
| NI Class | Cost/rate (2026/27) | When it applies | Counts towards State Pension? |
|---|---|---|---|
| Class 2 (voluntary) | £3.65/week | Some self-employed people with profits under £7,105 | Yes |
| Class 2 (treated as paid) | £0 | Self-employed, profits of at least £7,105 | Yes |
| Class 3 | £18.40/week | Voluntary contributions to fill eligible gaps | 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 build State Pension entitlement. Qualifying years can instead be built through Class 1 or Class 2 contributions, voluntary Class 3 contributions and NI credits.
Can I get NI credits without paying?
Yes. NI credits are available in a number of circumstances, including when you receive certain benefits or have caring responsibilities.
For example, claiming Child Benefit for a child under 12 can provide NI credits.
Some family members who care for a child under 12 may also be able to claim Specified Adult Childcare credits. These are subject to conditions, including the child’s parent or main carer agreeing to transfer the credit.
How far back can I fill gaps in my record?
Normally, you can pay voluntary NI for the previous six tax years. The deadline is 5 April each year.
The temporary extension that allowed some people to fill much older gaps dating back to 2006 ended on 5 April 2025.
What happens if I don’t have 35 qualifying years?
You may still receive a reduced new State Pension if you have at least 10 qualifying years.
The 35-year figure mainly applies to people whose NI record started after April 2016. If you had an NI record before the new State Pension was introduced, the amount you receive can depend on your pre-2016 record and starting amount.
What is the State Pension age, and is it changing?
The State Pension age is currently rising from 66 to 67.
Under current legislation, the transition takes place between April 2026 and April 2028, so the exact age at which you can claim depends on your date of birth.
You can check your State Pension age on GOV.UK.
Does time spent working abroad count towards my UK State Pension?
It can affect your entitlement, particularly if you worked in the European Economic Area, Switzerland or a country with which the UK has a relevant social security agreement.
The rules vary depending on where and when you worked, so check your State Pension forecast and the relevant government guidance rather than assuming an overseas year counts as a UK qualifying year.
If I pay voluntary NI late, will it still count?
Yes, as long as the contribution is still within the permitted payment deadline for that tax year.
Before paying, check whether filling the year will actually increase your State Pension.
What if I take time off work for childcare or caring?
You may be entitled to NI credits.
Child Benefit can provide credits while caring for a child under 12, while Carer’s Allowance and some other caring arrangements can also protect your NI record.
In some circumstances, you can transfer credits to another eligible family member who looks after a child.
How often should I check my NI record?
There is no set interval, but it is worth checking periodically and after any year in which you had low profits, stopped working, changed employment status or spent time abroad.
This gives you more time to deal with any gaps before the deadline for voluntary contributions passes.
What are the current voluntary NI rates?
For 2026/27, the weekly rates are £3.65 for Class 2 and £18.40 for Class 3.