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HMRC internal manual

National Insurance Manual

Class 2 National Insurance contributions: general information: voluntary contributions

Regulation 87A, 88, 89, 90, 146, 147 and 148 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

Who can pay voluntarily?

There are 3 groups of persons who are not liable to pay Class 2 NICs but who are entitled to pay them voluntarily:

  • those who are not liable to pay because their relevant profits (chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005) are below the small profits threshold – see NIM70300
  • those not liable to pay Class 2 NICs, despite their profit levels, because they are not chargeable to income tax under Chapter 2 of Part 2 of the Income Tax (Trading and Other Income) Act 2005 and who are not therefore required to pay Class 4 NICs under section 15 of the Social Security Contributions and Benefits Act 1992 (i.e. those who are self-employed but running a business that is not a trade, profession or vocation)
  • those who satisfy certain conditions that allow them to pay voluntary Class 2 NICs for periods whilst working abroad, whether employed or self-employed (under regulation 147 of the Social Security (Contributions) Regulations 2001) – see NIM71150

 

Notifying HMRC of the date a person wants to start or stop paying Class 2 NICs voluntarily

Those who are entitled and choose to pay Class 2 NICs voluntarily should tell HMRC, in writing or by electronic communications approved by HMRC, when they become or cease to be entitled to pay Class 2 NICs. They should do this on the date they wish to start or stop paying Class 2 NICs.  There is no penalty for not telling HMRC when they want to start or stop paying Class 2 NICs voluntarily.

Notifying a change of address

A person paying Class 2 NICs voluntarily should tell HMRC immediately of any change of address, in writing or by electronic communications approved by HMRC. If they fail to do this there is no penalty.