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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: general information: deferment

Regulations 21, 52A, 90, 95 and 100 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Prior to 6 April 2015, where a person had 2 employments concurrently, one as an employed earner and the other self-employed, they were liable for Class 2 NICs and possibly Class 4 NICs as a self employed earner, in addition to any Class 1 NICs paid as an employed earner. Where payment of Class 1 and Class 2 NICs together for any year exceeded the annual maximum (see NIM37010), the excess may have been refunded on application.  Alternatively, to avoid refund action, liability for Class 2 NICs (and Class 4 NICs) may, upon application by the contributor, have been deferred.

From the 2015 to 2016 tax year, Class 2 NICs is payable annually through the Self Assessment system.

A Class 2 NICs liability only arises where the self-employed earner has relevant profits of or above the small profits threshold (SPT) – see NIM70150.  Any Class 1 NICs paid during the tax year may already be recorded on the earner’s National Insurance account by the time the Self-Assessment is filed, and where the annual maximum has been reached the earner will not be required to pay Class 2 NICs.

Deferment is not available for Class 2 and Class 4 NICs for the 2015 to 2016 tax year onwards.