Class 2 National Insurance Contributions
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 a Self Assessment tax bill. The last Class 2 NICs payment request was issued in October 2014 and is due to be paid by 31 January 2015. The next payment request will be issued in April 2015 and will be due for payment by 31 July 2015.
The self-employed can also pay 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.