Changes in the law on 1 October 2022
From 1 October 2022 the law around Class 2 Social Security contributions changes. This will affect when you need to pay your contributions.
Until 30 September 2022 you can pay your contributions quarterly. However, from October 2022 you will need to pay your Class 2 contributions monthly.
There are no other changes that will affect you or the way you pay.
Further details will be published nearer the time.
About Class 2 contributions
Social Security contributions are payments that you must make by law.
If you don't pay your contributions it may affect your entitlement to benefits.
About contributions
Who should pay and exemptions
You pay Class 2 contributions if you’re 18 or over and below the pension age, have been living in Jersey for more than 6 months and are:
- self-employed
- unemployed
- • studying
- a stay-at-home parent
- earning less than £1,016 per month from an employer
- earning less than the
minimum earnings threshold
You may be exempt from paying depending on your circumstances.
Exemptions
You may be exempt from paying if you can receive contributions credits or have a low income.
Contribution credits
In some cases, contribution credits may be available if you cannot afford to pay. For example, if you:
- are off work sick or injured
- have been made redundant
- are studying
- are looking after children under school age
Credits protect your Social Security contribution record and entitlement to certain benefits.
You must apply for credits as we don’t add them to your record automatically. Apply for contribution credits and find out more
if you can’t afford to pay contributions.
Low income
You can apply to be exempt from paying your Class 2 contributions in the current year if you:
- have a low income and aren't working
- are working and earn less than £1,016 per month
- are self-employed with a predicted income of less than £19,056 in the current year
To be exempt from paying your Class 2 contributions you must apply for a Low Income Contribution Relief. Find out more
if you have a low income or aren't working, including how being exempt may impact your benefits.
Pay your contributions
There are different payment methods to
pay your Social Security contributions and instalments.
If you set up a direct debit, you’ll pay your contributions in arrears on day 15 every month. For example, your contributions for March will be paid on 15 April.
Overpayment
We’ll automatically send you a refund at the end of the quarter if you overpay contributions. You may overpay if you have:
- credits
- Class 1 contribution payments (employed)
- Short Term Incapacity Allowance claim (STIA)
- a pension starting
Having problems paying
Contact us as soon as possible if you have problems paying your contributions. If you don’t pay you may be prosecuted and lose your entitlement to benefits.
When to pay
From 1 October 2022 the law around Class 2 Social Security contributions changes. This will affect when you need to pay your contributions. See changes in the law on 1 October 2022 for more details.
Until September 2022
We'll send your Class 2 contributions bill quarterly, unless you pay by direct debit.
Contact us immediately if you don’t receive your bill.
We’ll send you a statement if you haven’t fully paid your contributions from the past quarter.
The table below shows you when we’ll send your bill and when your payment is due.
| A | January, February, March | Fifth working day of April | 15 April |
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| B | April, May, June | Fifth working day of July | 15 July |
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| C | July, August, September | Fifth working day of October | 15 October |
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| D | October, November, December | Fifth working day of January | 15 January
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Apply to pay your contributions
You must tell us if your circumstances change and you need to start paying Class 2 contributions:
-
email Social Security Contributions with ‘request for RRC’ and your social security number in the subject title
- attach a copy of your tax assessment from 2 years ago
- if you don’t have your tax assessment from 2 years ago, tell us in your email. We can request a copy on your behalf but this may slightly delay the process
If you’re self-employed you may have different payment options. Visit Class 2 contributions payment options for self-employed to learn more and apply.
How your rate is calculated
Rates and thresholds below are for 2022 and change every year.
The contributions rate you pay is calculated using the Reduced Rate Contributions (RRC) method. Calculations are based on your income from 2 years ago. This is used because it’s your most recent available tax assessment and the best evidence to estimate your income.
You pay:
- 12.5% on annual income up to £57,168 (Standard Earnings Limit)
- 2.5% on annual income between £57,168 to £260,688 (Upper Earnings Limit)
- 0% on annual income over £260,688 (maximum rate of contributions applied)
We consider both your earned and unearned incomes to calculate your rate. Unearned income is any income you earn outside of working or providing a service. For example, income from investments or renting a property.
For example, if your annual income is £2,000 more than £57,168, you’ll pay a rate of 12.5% of £57,168 and 2.5% of £2,000.
The calculation may be slightly different depending on your circumstances.
Contact Social Security Contributions for further information and guidance.
Types of taxable income
Social Security contribution levels
Reduced rate calculation
The amount you pay is recalculated every January based on your income from your latest tax assessment.
You’ll be notified of your new monthly rate in or around January each year. If you pay:
- by direct debit, the new amount will be taken directly from your account
- in any other way, you’ll be responsible for paying the new amount
Payment options for self-employed
As self-employed you have different payment options depending on your circumstances. Some options may be more cost-effective. Learn about the different options on Class 2 contributions payment options for self-employed.
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