Who must pay Class 2 contributions
You're liable to pay Class 2 contributions if you're:
How much are Class 2 contributions?
The amount you pay is worked out from your income two years previously.
Paying deferred rate Class 2 contributions if you've recently become self employed
If you are recently self-employed, you have an option to pay a deferred rate. For 2016, the rate is £170.58 per month.
How to apply for the deferred rate of contribution
Visit the Contribution and Enforcement Zone, bringing with you your 2014 Income Tax assessment. We will explain to you the terms and conditions that apply if you take the deferred rate.
You'll need to provide your Income Tax assessment for any year in which you pay a deferred rate Your correct contribution rate will then be recalculated using the actual income from that assessment.
You will be contacted directly and any under or over-payment will be addressed.
Income limits for applying for reduced rate Class 2 contributions
In 2016, the annual total income on your 2014 tax assessment must be within the following limits:
|Upper Earnings Limit (UEL)||£162,504|
|Lower Earnings Limit (LEL)||£9,888|
You won't be entitled to a reduced rate figure if your income is not within these limits.
How reduced rate Class 2 contributions are calculated
We use the figures declared on your 2014 income tax assessment.
We can use an estimated assessment, which will count as a claim.
Expected income cannot be assessed.
If you were in full-time education or training during that year, we can calculate a reduction for you.
Paying Class 2 contributions
We'll send you a Class 2 contributions statement every three months.
If you don’t receive a statement, you must contact us immediately.
How to pay Class 2 contributions
You can pay by:
debit card, either by phone or in person
direct debit monthly in arrears
BACS payment directly into our bank account (sort code 40-25-34 account number 12155001). We'll also need your social security number or employer code and period
Pay your contributions or instalments online
If you pay your contributions by direct debit, your rate will be calculated from your tax details. We'll let you know if your rate has been amended.
When to pay your contributions
Find out when the statements will go out and when you need to pay by.
January, February, March
Fifth working day of April
April, May, June
Fifth working day of July
July, August, September
Fifth working day of October
If you haven't received a Class 2 statement
You must contact us if you haven’t received a Class 2 contributions statement. This doesn’t excuse you from paying and isn’t a valid reason for late payment.
Paying contributions if you’re unemployed or non-employed
If you’re unemployed or non-employed, you must pay your contributions through Class 2 contributions or be covered by contributions credits.
About contributions credits