Class 2 National Insurance contributions
Starting from April 2014, HMRC can collect outstanding Class 2 National Insurance Contributions by adjusting a taxpayer’s tax code or by passing the debt onto a specialist private debt collection company.
Class 2 National Insurance Contributions (NICs) are paid by all self-employed taxpayers unless they qualify for the small earnings exemption or other exemptions which remove the necessity to pay NICs. Class 2 NICs are payable at a flat weekly rate.
Payments for Class 2 NICs become due on 31 January and 31 July, the same dates as those of a Self Assessment tax bill. The next payment request will be issued in April 2014 and will be due for payment by 31 July 2014.
The self-employed may continue paying monthly by direct debit or six monthly on the actual payment due date if they do not wish to stagger the payments. Class 2 NICs count towards payments such as the basic state pension, the employment and support allowance, maternity allowance and bereavement benefits.