NIM20001 | Class 2 National Insurance contributions liability: Introduction

Section 11 of the Social Security Contributions and Benefits Act 1992

Every self-employed earner (see NIM20100) 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 NIM20050)

was liable to pay Class 2 NICs except in the cases described in NIM20775.

A person who was employed and self-employed at the same time was liable for both Class 1 and Class 2 NICs (and Class 4 - see NIM24000 et seq) subject to an annual maximum. If the individual concerned expected to pay more than the annual maximum they could apply to defer payment of Class 2 (and Class 4) NICs (see NIM20725) up to 5 April 2015. Class 2 NICs are payable at a flat rate for each contribution week or part of a week in a contribution year (see NIM20100).

NIM20250 explains how Class 2 NICs could be paid up to 5 April 2015.

Interest was not payable on late Class 2 NICs but

• they may have been charged at a rate higher than that which was in force at the time they were due (see NIM23002)

• late payment could adversely affect entitlement to contributory benefits. Enquiries about how benefits were affected by late payment should be referred to DWP.