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Why don’t we still pay Class 2 NIC monthly?
06/12/2017

Class 2 national Insurance contributions (NICs) are paid by self-employed taxpayers and members of partnerships if their annual profits are over £6,025. Class 2 NICs are payable at a flat weekly rate currently, £2.85. Class 2 NICs count towards payments such as the state retirement pension, the employment and support allowance, maternity allowance and bereavement benefits. The withdrawal of class 2 NICs was due to take place from April 2018 but has now been delayed until April 2019.

The collection of class 2 NICs changed with effect from the 2015-16 tax year and is now made through the existing self-assessment system together with income tax and class 4 NICs. A liability to class 2 NIC should be reported on an individual’s self-assessment tax return and any payment of class 2 NICs relating to 2016-17 will become due on 31 January 2018. The option to make a monthly payment is no longer generally available, however it is possible to set-up a Budget Payment Plan and continue making payments in instalments.

Planning note

A limited number of self-employed taxpayers don’t pay tax through self-assessment (such as a non-UK resident who is self-employed in the UK). If this is the case, HMRC should contact you to make separate payment arrangements.


Contact Us

Poole Office

Tower House, Parkstone Road
Poole, Dorset
BH15 2JH
Tel: 01202 678555

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Company Registration No: O7430971
VAT Registration No.107585703

Wimborne Office

Beaufort House, 2 Cornmarket Court
Wimborne
BH21 1JL
Tel: 01202 849169

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