NIM70150 | Class 2 National Insurance contributions: general information: contribution period

Sections 11 and 15 of the Social Security Contributions and Benefits Act 1992 (SSCBA)

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

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 SSCBA 1992.

From 6 April 2022 a Class 2 NICs liability only arises where the self-employed earner has relevant profits exceeding the Lower Profits Threshold (LPT).

Where relevant profits exceed the LPT, 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 on the position before 6 April 2022 see NIM70001.

From 6 April 2024 the LPT was removed which means that liability to pay Class 2 NICs no longer exists.

Where the self-employed earner has relevant profits at or above the Small Profits Threshold (SPT), they will be treated as having actually paid Class 2 NICs.