Social security contributions
Social Security contributions are different to tax. Contributions are paid by everyone so we can provide a range of benefits, pensions and health services to you when you need them, for example, sick pay and your old age pension.
Why contributions are paid
Business owners pay a different class of contributions to employed people known as class 2 contributions. Both the primary (6%) and secondary (6.5%) contribution are deducted from your income. Employed people only pay the primary contribution (6%) and their employer pays the secondary contribution (6.5%).
The definition of self-employed for Social Security purposes includes:
- sole traders
- partners in a partnership
- company owners, shareholders or people with significant control in a company, for example Directors
Your payment options
You have different payment options to pay your Social Security contributions. You need to apply for the option you want to avoid being billed at the maximum rate of £1,019.50 per month.
Class 2 contributions payment options for self-employed
Your Class 2 contributions must be paid every 3 months. From October 2022 you’ll need to pay every month. We'll send you a bill. You can set up a monthly direct debit.
Paying class 2 contributions