NIM70350 - Class 2 National Insurance contributions: general information: Budget Payment Plan

A Budget Payment Plan (BPP) is an easier way for customers to pay their Self Assessment tax and NICs. It's a customer service initiative; helping customers meet their payment obligation. Paying by BPP is voluntary and flexible and allows customers to make regular payments towards a future liability, especially if they're having difficulties paying in full at the due date.

A BPP customer can:

  • decide the regular weekly, monthly or quarterly amount they want to pay
  • choose to change their regular payment amount
  • take a break and suspend payment for a period of up to 6 months
  • cancel the BPP at anytime

Budget Payment Plans are only available where the self-employed earner is up to date with his or her Self Assessment payments. There is no mandatory requirement for self-employed earners to make such payments. The onus will be on the individual to set-up these payments and decide how much they want to pay.

From 6 April 2024, the Class 2 Lower Profits Threshold was removed and any self-employed person with profits at or above the Small Profits Threshold are treated as having actually paid Class 2 NICs. Therefore after this date the BPP will not include Class 2 NICs.