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Class 2 National Insurance

  • 2 min read

Class 2 National Insurance is one of two types of National Insurance (NI) that you pay if you’re self-employed. You pay National Insurance so that you’re entitled to certain state provided benefits such as the state pension. 

The second type that you pay is Class 4. With both, the type that you pay is determined by how much you earn. You start paying Class 2 NI once you earn over £6,725 a year from self-employment.

How much is Class 2 National Insurance?

You pay a fixed amount calculated at £3.15 per week. That works out as a flat £164 per year.

Unlike Income Tax, you have to pay National Insurance even if you earn less than the tax-free Personal Allowance. If you’ve not heard of it, it’s the first £12,570 that you earn. This is usually the case. However, following the 2022 Spring Statement, the NI thresholds for Class 1 and Class 4 contributions are increasing to match the Personal Allowance at £12,570. This change will take place in July 2022, which means that you won’t need to pay any NI for Class 1 and 4 for earnings less than £12,570. 

NI class Who pays? How? How much is it?
Class 1 Employees earning more than £189 per week who are under State Pension age a year Your employer deducts it through PAYE 13.25% (or 3.25% if you earn over £262 a week)
Class 1A or 1B Employers for employees earning over £189 per week Your employer pays it on top of your Class 1 15.05%
Class 2 Self-employed people earning over £6,725 a year Through a Self Assessment tax return Flat £164 per year
Class 3 Voluntary contributions – you can pay them to fill gaps in your NI record Through a Direct Debit £15.85 per week
Class 4 Self-employed people earning over £9,880 a year Through a Self Assessment tax return 10.25% (or 3.25% if you earn over £50,270)

What do I owe?

Click to 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 £9,880 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 both Class 1 NI, Class 2, and potentially Class 4.
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