NIM20001 - Class 2 Liability: Introduction

Every self-employed earner who has attained age 16 but has not reached state pension age and who satisfies the prescribed conditions of residence or presence in GB (see NIM20002) is required to pay Class 2 NICs except in the cases described in NIM20010

A person who is concurrently employed and self-employed is liable for both Class 1 and Class 2 (and Class 4 – see NIM24000 et seq.) NICs subject to an annual maximum. If the individual concerned expects to pay more than the annual maximum he or she can apply to defer payment of Class 2 (and Class 4) NICs (see NIM20007)

Class 2 NICs are flat rate. They are payable –

• Every three months, in arrears, by quarterly bill (QB);
• Monthly, in arrears, by direct debit (DD); or
• When asked for, if deferment has been granted (see NIM20007)

Interest is not payable on late Class 2 NICs but they may be charged at a rate higher than that which was in force at the time they were due (see NIM23000).