Class 2 contributions
By law, everyone living in Jersey is liable to pay contributions.
We use your Social Security contribution record to see whether you are entitled to certain benefits and an Old Age Pension.
Who must pay?
You are liable to pay Class 2 contributions if you’re:
Your Class 2 contributions statement
Class 2 contributions must be paid by day 15 of the month after every quarter. This means that contributions for January, February and March are due to be paid by 15 April.
We send statements out every quarter to anyone who hasn’t fully paid their Class 2 Social Security contributions from the past quarter.
How much are Class 2 contributions?
The amount you pay is worked out from your income two years previously.
Example of your Class 2 rate
If you are self-employed in 2018, your relevant tax assessment would be from 2016. Your rate for 2018 will vary between £108.00 and £734.21 per month.
If you are recently self-employed, you have an option to pay a deferred rate. For 2018, the rate is £178.75 per month.
How to apply for the deferred rate of contribution
Visit the Contribution and Enforcement Zone, bringing with you your 2016 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.
Depending on your circumstances (ie studying or looking after young children) you may be able to apply for contribution credits which protect your Social Security record.
For more information about credits use the link below or contact us.
About contribution credits
Small Income Exception
If you earn less £10,368 per year, you may be able to apply for a Small Income Exception, which means you will have a gap on your Social Security record.
Your future benefits, such as a pension and sickness pay may be reduced or you may not qualify at all.
People on a small income
Reasons why you might have received a Class 2 statement (bill)
You will have received a statement from us because you are liable to pay Class 2 contributions.
You're liable to pay Class 2 contributions if you are:
living in Jersey (for six months or more)
over 18 but below pension age
earning below the Lower Earnings Limit (LEL) of £908.00 per month
working less than eight hours per week
What to do if you receive a statement
Don't ignore it.
You should pay the outstanding contributions. If you think the amounts are wrong, or if you are having problems paying it, let us know immediately.
Ways to pay Class 2 contributions
How to pay
You can pay Class 2 contributions by direct debit. This helps with budgeting and cash flow, and makes it less likely that you will overpay or underpay.
Direct debits are paid monthly in arrears. You pay on day 15 of the month after the contributions month. For example, your contributions for January 2018 will be paid on 15th February 2018.
If you pay your contributions by direct debit, your rate will be calculated from your tax details. We'll automatically let you know if your rate changes.
If you have received a statement and don’t pay by direct debit, you will need to pay this amount using one of these options:
debit card, either by phone or in person
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.
If you overpay, we will automatically send you any refund you are due at the end of the quarter. You might have overpaid if you have:
Pay contributions and instalments
If you have received a contributions bill (missing Class 1)
If you’re having problems paying
By law you have to pay the contributions you are liable for. If you are having problems paying, contact us as early as possible to discuss your options.
If you don’t pay the contributions you are liable for, you may be prosecuted. You may also lose your entitlement to benefits such as a pension and sickness pay.
When to pay your contributions
Find out when we send statements out and when you need to pay by.
Statement to go out 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
October, November, December
Fifth working day of January
If you haven't received a Class 2 statement (bill)
You must contact us if you haven’t received a Class 2 contributions statement. This doesn’t excuse you from paying and is not a valid reason for late payment.