How do NI Qualifying Years work if you're self-employed *at a low rate* AND employed

Question

In order to receive a full UK State Pension you must accrue enough "Qualifying Years".

• I (think that!) I understand how qualifying years work if you're just employed.
• And I (think that!) I understand how qualifying years work if you're just self-employed.
  • In particular, if you're below an earnings threshold, your Class 2 NICs are not compulsory, so you are permitted to just not pay Class 2 NICs. But if that were your only income then the consequence would be that in that year you haven't qualified ... and thus you might choose to make a Voluntary Class 2 NIC, in order to still qualify for that year.

This is documented here: https://www.gov.uk/new-state-pension/your-national-insurance-record-and-your-state-pension#qualifying-years-if-youre-working

What I'm not at all clear on (and can't find any commentary on, anywhere) is how these 2 cases interact if you're doing both?

The Tax Return form is very clear that you can choose not to pay the Class 2 NICs ... but I can't tell what that's doing to the qualifying year?

I can easily imagine either of the following interpretations:

• You've paid "your dues" via PAYE Class 1 NICs, so you're all good ... you've already qualified.
• You may have paid Class 1, but you didn't pay your Class 2, so you haven't paid your full NI dues ... you so don't qualify this year.

How does it work?

Bonus points for a reference to a .gov.uk source for the answer!

Answer 1

You don't have to do both, in order to qualify; EITHER ... OR is fine.

If your employment is adequate to qualify you for NI in its own right... AND you are also self-employed but choose not to pay Voluntary Class 2 NICs ... then you have still completed a qualifying year of NI.

Confirmed by 2 Sources:

• 1 colleague who spent 10+ years working in the Civil Service, in Tax Policy.
• 1 friend who was in this boat in the 2021-22 tax year, declined Voluntary NICs on their Tax Return and has checked their NI record which reports that they did complete a full qualifying year in that year.