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:

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?

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 Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - a UK small business finance blog where she shares help and advice with the self-employed community to make topics like registering a business, bookkeeping and taxes easy to understand.