Ainsworth Accountants: Accounts, Tax and Business Advisors.
Class 2 National Insurance
What is Class 2 National Insurance ?
Class 2 National Insurance Guide
Class 2 National Insurance ceases at the end of the UK Tax Year 2023/24
Voluntary Class 2 National Insurance contributions continue.
Self-Employed people normally have to pay Class 2 NI contributions up to 5/4/2024.
For the final tax year 2023/24 (6/4/23 to 5/4/24) the Class 2 NI flat rate is £179.40 for the year. However, if your earnings are below £6,725 per year (see below) you might not need to pay.
Class 2 NI is not a business expense so is not allowed as an expense against tax.
Exceptions to paying Class 2 NI
You don't have to pay Class 2 National Insurance contributions if any of the following apply:
• you are under 16
• for any periods after you have reached State Pension age
• your earnings are below a certain level - see 'Small Profits Threshold' below
• full list on HMRC website (link below)
Property Rental Income
Class 2 NI is not normally payable by people who let a small number of properties. This is because property letting in small numbers is regarded as investment not a trade.
Please also see our webpage: Property Rental Income
Class 4 National Insurance
Self-employed people may also need to pay Class 4 National Insurance, which is calculated as a percentage of business profits.
Government and HMRC Links
National Insurance Overview
Pay Class 2 National Insurance
Class 2 National Insurance contributions
Self-employed tax and National Insurance
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