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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: general information: introduction

Section 11 of the Social Security Contributions and Benefits Act 1992 and Section 11 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992

Every self-employed earner (see NIM70100) 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 NIM70050)

is required to pay Class 2 NICs where the earner has relevant profits of or above the small profits threshold (section 11(2) SSCBA 1992) – see NIM70150.  For those self-employed earners whose relevant profits do not exceed the small profits threshold or have no relevant profits, such earners will be eligible to pay voluntary Class 2 NICs (section 11(6) SSCBA 1992) – see NIM70300.

From the 2015 to 2016 tax year, for most self-employed earners, Class 2 NICs will be assessed, calculated and payable annually through the Self-Assessment system.  However, there will be exceptions to this – see NIM70400 (Regulation 43 of the Social Security (Contributions) Regulations 2001).

NIM72000 explains how Class 2 NICs can be paid.

Any Class 2 NICs due for tax years from 6 April 2015 which are collected through the Self Assessment system and are late paid:

  • will be subject to late payment interest and penalties,
  • and late payment may adversely affect entitlement to contributory benefits - enquiries about how benefit is affected by late payment should be referred to DWP


In circumstances where a self-employed earner was employed for a period before 6 April 2015 but failed to inform HMRC, NIM20000 onwards will apply in respect of the period up to and including 5 April 2015.