Class 2 National Insurance contributions
Changes to the payment dates for Class 2 National Insurance contributions (NICs) became effective from 6 April 2011.
Class 2 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, currently the self-employed can choose to pay NICs by monthly direct debit or by quarterly bill.
From April 2011, 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 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.