You are liable to pay Class 2 contributions if you:
- are self-employed
- are over 18 and no longer in full time education
- have been living in Jersey for six months or more
- do not work for an employer
- earn less than the lower earning limit (LEL) of £808 per month (through employed work)
How much are Class 2 contributions?
The maximum Class 2 contributions payable for 2013 is £656.29 per month.
Firstly there is a monthly amount of £479.25, which is equal to 12.5% of the Standard Earnings Limit (SEL), of £46,008. In addition a further 2% is payable on any earnings between the SEL and the Upper Earnings Limit (UEL) of £152,232.
This gives a maximum figure of £479.25 (SEL) + £177.04 (UEL) making a total due per month of £656.29 during 2013.
Can I have the Class 2 maximum rate reduced?
As with an employed person, if you have lower earnings / income, you may be entitled to pay a smaller contribution. The reduced amount you pay will depend on your income declared on your 2011 tax assessment.
Have you recently become self-employed?
Why do you use my income / earnings from two years previous to the current year?
The reduced rate contribution for 2013 is calculated using the figures declared on your 2011 income tax assessment as this is an agreed income between you and the Tax Department. We are unable to assess you on expected income.
Please note: if you were in full-time education or training during that year, and were not liable to pay tax, we can still calculate a reduction for you.
How do I apply for a reduced rate figure?
Every year you must provide a copy of your tax assessment from the tax year two years previous. This must be provided not later than 15 June. You can either call in at the Contributions and Enforcement Zone or send the tax assessment in the post or by email.
Important: if you claim later than 31 March then your reduced rate Class 2 contributions will not have been calculated in time for you to pay your January to March contributions.
You may also be required to provide additional information to substantiate your claim.
If your application is successful, we will tell you about your reduced rate Class 2 contribution on a notification form.
Income limits for reduced rate Class 2 contributions
In 2013 the annual total income on your 2011 Tax Assessment must be within the following limits:
Upper Earnings Limit £152,232
Lower Earnings Limit: £9,312
If your income is not within these limits, you will not be entitled to a reduced rate figure.
The maximum Class 2 contribution payable for 2013 is £656.29 per month.
For a reduction below £656.29 per month your total annual income including both earned and unearned income must be less than £152,232.
How do I pay Class 2 contributions?
We send you a Class 2 contributions statement quarterly (every three months) in arrears telling you how much you are required to pay. If you do not receive a statement you need to contact us immediately.
You can pay by:
- debit card - by phone or in person (please note that we can only accept payments by debit card and not any other form of card, including credit card)
- direct debit monthly in arrears - please contact us and we will send you a direct debit form to complete
- BACS payment directly into our bank account - please contact us on +44 (0)1534 447343 for details
- cash or cheque
I pay by direct debit. What happens to my payments at the end of each year?
If you currently pay your Class 2 contributions by direct debit you must ensure that the relevant year's tax assessment is submitted to the Contributions and Enforcement section by the middle of January.
Once your rate has been calculated, a form will be sent to you to agree, sign and return to the Contributions and Enforcement section.
If you fail to return this signed form, by the end of January at the latest, your contribution rate may revert to the maximum rate, currently £656.29, for the February payment.
The reduced rate contribution for 2013 is calculated using the figures declared on the 2011 income tax assessment.
What if I do not receive a Class 2 bill?
The table below shows the dates your contributions must be paid by. If you have not received a bill and the due date is approaching you must contact us.
If you have not received a bill this will not excuse you from paying and is not a valid reason for late payment.
When do I have to pay my contributions by?
||Due date |
|January, February, March
||15 April |
|April, May, June
||15 July |
|July, August, September
||15 October |
|October, November, December
||15 January |
Am I liable to pay Social Security if I am not employed?
If you are unemployed or non-employed, in order to keep your contributions record up to date you will have to ensure that your contributions are either:
- paid by you through Class 2 contributions or
- covered by contributions credits
About contributions credits