How does the State Pension work for self-employed sole traders?

Yes — self-employed sole traders can qualify for the full State Pension, which is £221.20 per week in 2024/25 (the full 'new State Pension'). You need 35 qualifying NI years for the full State Pension, and a minimum of 10 years to receive any State Pension at all. From April 2024, the rules changed: sole traders with profits above £6,725 get State Pension entitlement even without paying Class 2 NI (which was abolished). Class 4 NI contributions are now treated as building your record. If you have gaps in your NI record (years with low profits or not working), you can fill them with voluntary Class 3 contributions at £17.45/week in 2024/25. Check your State Pension forecast at gov.uk/check-your-state-pension to see your projected entitlement.

  • Full new State Pension: £221.20/week in 2024/25 (requires 35 qualifying NI years)
  • From April 2024: profits above £6,725 earn NI credits even without Class 2 NI
  • Profits below £6,725: no automatic NI credits; consider voluntary Class 3 contributions
  • Voluntary Class 3 NI: £17.45/week in 2024/25 to fill gaps
  • Check your forecast at gov.uk/check-your-state-pension

Related Questions

  • Do sole traders still pay Class 2 National Insurance in 2024/25?
  • How much Class 4 National Insurance do sole traders pay in 2024/25?
  • Can self-employed people claim pension contributions as a tax deduction?