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 of £6,725 are not be required to pay Class 2 NIC but still have access to contributory state benefits including the state pension.

Prior to 6 April 2024, self-employed people with profits between the small profits threshold of £6,725 and the lower profit threshold of £12,570 did not pay Class 2 NIC but had access to contributory benefits.

The option to voluntarily pay Class 2 NIC where profit levels are below £6,725 is available in order to allow self-employed people to obtain NIC credits and the rate remains at the weekly rate of £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.

Self-employed individuals are expected to submit their self assessment return in good time, eg by 31 January 2026 for 2024/25 returns, to ensure entitlement to credit for state pension purposes is not impacted (see the Qualifying year for state pension purposes guidance note). This may

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