Class 2 national insurance contributions

Produced by a Tolley Owner-Managed Businesses expert

Owner-Managed Businesses

Guidance

From 6 April 2024, self-employed people with profits above the small profit threshold are not be required to pay Class 2 NIC but still have access to contributory state benefits including the state pension.

The option to voluntarily pay Class 2 NIC where profit levels are below the small profit threshold of £6,845 is available in order to allow self-employed people to obtain NIC credits and the rate is a weekly rate of £3.50 for 2025/26 (£3.45 for 2024/25).

The commentary below therefore applies up to 5 April 2024 and to those wishing to voluntarily pay Class 2 NIC.

For Class 4 contributions, see the Class 4 national insurance contributions guidance note. For relevant types of NIC in relation to employed people, see the Overview of NIC Classes, rates and thresholds guidance note.

Class 2 NIC overview

Prior to 6 April 2024, Class 2 NIC arose where a self-employed individual had income chargeable to tax as trading income, although there were certain exemptions which are considered below. Class 2 NIC are flat rate contributions

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