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Class 2 National Insurance

  • 2 min read

Class 2 National Insurance was one of two types of National Insurance (NI) paid by the self-employed.

You pay National Insurance so that you’re entitled to certain government-provided benefits, like the State Pension. 

The second type that you pay is Class 4. The rate you pay for both classes are determined by how much you earn.

Until 6th April 2024, Class 2 was paid on earnings over £6,725 a year from self-employment. But now, you don’t pay national insurance until you earn £12,570 (the personal allowance). When you earn over this threshold, you pay Class 4 national insurance. 

🚨🚨🚨From the 2024/25 tax year, self-employed people no longer need to make Class 2 contributions as they’re being scrapped. You can still make them voluntarily if you’re under the threshold and want to qualify for benefits, but it’s not a requirement🚨🚨🚨

How much was Class 2 National Insurance?

You paid a fixed amount calculated at £3.45 per week. That works out as a flat £179 per year.

Here are the rates pre-2024/25 tax year.

NI class Who pays? How? How much is it?
Class 1 Employees earning more than £242 per week who are under State Pension age a year Your employer deducts it through PAYE 10% (or 2% if you earn over £262 a week)
Class 1A or 1B Employers  Your employer pays it on top of your Class 1 14.53%
Class 2 Self-employed people earning over £6,725 a year Through a Self Assessment tax return Flat £3.45 per week (scrapped from 6 April 2024)
Class 3 Voluntary contributions – you can pay them to fill gaps in your NI record Through a Direct Debit £17.45 per week
Class 4 Self-employed people earning over £12,570 a year Through a Self Assessment tax return 9% (or 2% if you earn over £50,270) – this goes down to 8% from 6 April 2024

What do I owe now?

For the up to date rates, please use our National Insurance calculator. We’ll calculate what you owe based on what you earned and your expenses.

How do I pay?

You pay this tax via a Self Assessment tax return, the same way that you do with Income Tax. Here are few other things to bear in mind about National Insurance:

  • Once you earn over £12,570 a year you will also pay Class 4 NI
  • If you’re both employed and self-employed (i.e. you work a full-time salaried job and have a side hustle), you’ll pay = Class 1 NI and Class 4 (depending on earnings)
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