Class 2 National Insurance
What is Class 2 National Insurance ?
This is our Class 2 National Insurance Guide
Please note that compulsory Class 2 National Insurance ceased at the end of the UK Tax Year 2023/24.
Self-Employed people normally had to pay Class 2 NI contributions, up to 5/4/24.
Voluntary contributions can be still made.
Class 2 NI is part of Self Assessment and is paid with Income Tax and Class 4 NI.
For the final tax year 2023/24 (6/4/23 to 5/4/24) the Class 2 NI is a single payment £179.40 for the year. However, if your earnings are below £6,725 per year (see below) you might not need to pay. Class 2 NI does not vary with profit.
Class 2 NI is not a business expense so is not allowed as an expense against Income Tax.
Class 4 National Insurance
Self-employed people may also need to pay Class 4 National Insurance, which is calculated as a percentage of business profits.
