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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions liability: Introduction

Section 11 of the Social Security Contributions and Benefits Act 1992

Every self-employed earner (see NIM20100) who

  • has reached age 16, and
  • has not reached state pension age, and
  • satisfies the prescribed conditions of residence or presence in the United Kingdom (see NIM20050)

is required to pay Class 2 NICs except in the cases described in NIM20775.

A person who is employed and self-employed at the same time is liable for both Class 1 and Class 2 NICs (and Class 4 - see NIM24000 et seq) subject to an annual maximum. If the individual concerned expects to pay more than the annual maximum they can apply to defer payment of Class 2 (and Class 4) NICs (see NIM20725). Class 2 NICs are payable at a flat rate for each contribution week or part of a week in a contribution year (see NIM20100). For the 2011-12 contribution year the rate is £2.50 per week.

NIM20250 explains how Class 2 NICs can be paid.

Interest is not payable on late Class 2 NICs but

  • they may be charged at a rate higher than that which was in force at the time they were due (see NIM23002),
  • and late payment may adversely affect entitlement to contributory benefits. Enquiries about how benefit is affected by late payment should be referred to DWP.