Beta This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions liability: Breaks in self-employment

Regulation 3 and Schedule 2 of the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No 1689); Regulation 3 and Schedule 2 of the Social Security (Categorisation of Earners) (Northern Ireland) Regulations 1978 (SI 1978 No 401) A person’s self-employment is treated as continuing unless and until they are no longer ordinarily self-employed. This means that, barring the exceptions covered in NIM20775, they remain liable for Class 2 NICs during

  • temporary breaks in their work, for example holiday periods - including holiday periods spent abroad
  • temporary periods without work.

A person who is self-employed even for a few hours each week is liable to pay Class 2 NICs, whether this is the sole source of employment, or in addition to any work as an employee. Such persons can claim Small Earnings Exception (SEE) if they believe their income from self-employment will be less than the SEE limit in any given tax year (£5,315 for 2011/12), see NIM21000.