NIM70400 | Class 2 National Insurance contributions: general information: breaks in self-employment

Regulation 3 of, and Schedule 2 to, the Social Security (Categorisation of Earners) Regulations 1978 (SI 1978 No 1689)

Regulation 3 of, and Schedule 2 to, the Social Security (Categorisation of Earners) (Northern Ireland) Regulations 1978 (SI 1978 No 401)

A person’s self-employment is treated as continuing unless and until they are no longer ordinarily self-employed. This means that, barring the exceptions covered in NIM70550, they remain liable or entitled to pay Class 2 National Insurance contributions (NICs) during:

• temporary breaks in their work, for example holiday periods - including holiday periods spent abroad

• temporary periods without work

A person who is self-employed even for a few hours each week is liable to pay Class 2 NICs, whether this is their sole source of employment, or in addition to any work as an employee, unless their relevant profits are below the appropriate threshold. See NIM70001 for information on the thresholds.

Autumn Statement 2023

From 6 April 2024 the Lower Profits Threshold was removed which means that liability to pay Class 2 NICs no longer exists from tax year 2024 to 2025 onwards. A person’s self-employment is still treated as continuing unless and until they are no longer ordinarily self-employed therefore they are still considered self-employed for NICs purposes during any temporary breaks or any temporary periods without work as outlined above.