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Class 2 National Insurance Contributions

    Class 2 National Insurance Contributions. If you are self-employed, you’ll be presented with the Class 2 National Insurance Contributions page of your tax return.

    For 2018/2019 you’ll need to pay Class 2 National Insurance if your business profits were more than £6,205. If this relates to you, then you’ll see the amount you need to pay on this screen.

    If your profits were less than £6,205 although you won’t need to pay Class 2 National Insurance, you can voluntarily choose to pay it.

    Class 2 National Insurance for 2018/2019 is:

     2020/20212019/2020
    Small profits threshold – no NICs below this threshold£6,475£6,365
    Class 2 National Insurance£3.05 per week£3.00 per week

    Paying your Class 2 National Insurance consistently protects your ability to claim:

    • State benefits, like the new state pension
    • Maternity Allowance
    • Contribution-based Employment and Support Allowance

    If you want to make voluntary Class 2 National Insurance contributions, then tick “yes”, if not choose “no”. Then press “Save & continue” to move to the next section.

    Need help deciding? Read “Should I Voluntarily Pay Class 2 National Insurance?

    Disclaimer
    While I have made every attempt to ensure the accuracy of the contents of the “Straightforward Guide To Completing Your Self-Assessment Tax Return”, I cannot accept responsibility for any losses or penalties you may incur while following the contents. I have prepared the contents for a wider audience so you may need to seek additional assistance relevant to your own personal situation.

    Anita Forrest
    About Anita Forrest

    Anita is a Chartered Accountant with over a decade of working with small business owners. She is the creator of the ‘Go Self Employed’ website, where she simplifies complicated self-employment topics such as taxes, bookkeeping, banking and insurance.