Who has to pay Class 2 contributions?
You are liable to pay Class 2 contributions if you are:
- a Jersey resident
- over 18
- below pension age
- not working for an employer OR working for an employer and earning below the LEL
- have been living in Jersey for six months or more
How much are Class 2 contributions?
You are liable to pay the maximum rate of £670.67 per month unless you can have your contribution rate reduced. Find out how much Class 2 contributions are for this year.
Paying reduced rate Class 2 contributions if you've recently become self employed
If you’ve recently become self-employed and you expect to earn less than you did when you were employed, you may be eligible to pay a deferred rate of contribution.
How to apply for the deferred rate of contribution
You need to visit the Contribution and Enforcement Zone, bringing with you your 2012 Income Tax notice of assessment. An adviser will then explain to you the terms and conditions that apply when taking the deferred rate option.
You are required to produce your Income Tax assessment as soon as possible for any year in which you pay a deferred rate of contribution. Your contribution rate will then be recalculated using the actual income from that assessment, and any under- or over-payment will be addressed.
Income limits for applying for reduced rate Class 2 contributions
In 2014, the annual total income on your 2012 tax assessment must be within the following limits:
|Upper Earnings Limit (UEL)
|Lower Earnings Limit (LEL)
You will not be entitled to a reduced rate figure if your income is not within these limits.
How are reduced rate Class 2 contributions calculated?
Reduced rates are calculated using the figures declared on your 2012 income tax assessment, as this is an agreed income. We can also use an estimated assessment, which will count as a claim. We are unable to assess you on expected income.
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.
Paying Class 2 contributions: how and when
We will send you a Class 2 contributions statement every three months in arrears telling you how much you are required to pay. 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
- we can only accept payments by debit card and not any other form of card, including a credit card
- Direct Debit monthly in arrears
- we will send you a direct debit form to complete
- BACS payment directly into our bank account
- contact Social Security for our bank details
- cash or cheque
Cheques should be made payable to the Social Security Department.
If you pay by Direct Debit
If you 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, your contribution rate may revert to the maximum rate for the February payment.
When do I have to pay my contributions by?
Use the table below to 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
What to do if you don’t receive a Class 2 contributions 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 will have to ensure that your contributions are either paid by you through Class 2 contributions or covered by contributions credits.
About contributions credits