Class 2 National Insurance – Changes from April 2024
Who Pays?
As of 6 April 2024, most self-employed people no longer need to pay Class 2 NICs if their profits are above the Small Profits Threshold (SPT) of £6,725.
However:
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If your profits are above the SPT, you will receive NI credits automatically without needing to pay Class 2 NICs.
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If your profits are below the SPT, you can choose to pay voluntary Class 2 NICs to protect your entitlement to benefits.
2024–25 Rate:
What Do Class 2 NICs Count Towards?
Voluntary Class 2 contributions can help you qualify for:
Class 4 National Insurance – Still Required
Who Pays?
You must pay Class 4 NICs if your annual profits are £12,570 or more.
2024–25 Rates:
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6% on profits between £12,570 and £50,270
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2% on profits over £50,270
This rate has decreased from the previous 9% in 2023–24, helping to reduce the NIC burden on self-employed earners.
How Do I Pay These NICs?
Both Class 4 NICs and any voluntary Class 2 NICs are typically paid through your Self Assessment Tax Return.
If you're not registered for Self Assessment but want to make voluntary Class 2 contributions, HMRC will issue a payment request if applicable.
Exemptions from Class 2 NICs
Even before the 2024 change, certain individuals were exempt from paying Class 2 NICs. These exemptions still apply. You are not liable for Class 2 NICs if you:
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Are an examiner, moderator, or invigilator
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Run a business involving land or property
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Are a minister of religion without a salary or stipend
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Make investments for yourself or others (not as a business and without fees/commission)
If you fall into these groups, you may still wish to voluntarily pay Class 2 NICs to ensure your State Pension record remains intact.