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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: general information: contribution period

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

From the 2015 to 2016 tax year, Class 2 NICs are assessed, calculated and payable annually through the Self Assessment system for most self-employed earners.

A Class 2 NICs liability only arises where the self-employed earner has relevant profits of or above the small profits threshold (SPT).

Relevant profits are used when determining whether a Class 2 NICs liability exists, and are those profits in respect of which Class 4 NICs are payable under section 15 of the Social Security Contributions and Benefits Act 1992.

Where relevant profits are at or above the SPT, the assessment of Class 2 NICs liability is calculated by reference to the number of weeks, or part weeks, of self-employment in the tax year.

For guidance where relevant profits are below the SPT, see NIM70300.