Social Security Contributions and Benefits Act 1992

[F1 11 Class 2 contributions E+W+S

(1) This section applies if an earner is in employment as a self-employed earner in a tax year (the “relevant tax year”).

(2) If the earner has relevant profits [F2 that exceed the lower profits threshold], the earner is liable to pay Class 2 contributions for the relevant tax year at the rate of [F3 £3.45] in respect of each week in that year that the earner is in the employment.

(3) “Relevant profits” means profits, from the employment, in respect of which Class 4 contributions are payable under section 15 for the relevant tax year (or would be payable if the amount of the profits were to exceed the amount specified in subsection (3)(a) of that section in excess of which the main Class 4 percentage is payable).

[F4 (4) For the purposes of this Act—

(a) the “lower profits threshold” is [F5 £12,570], and

(b) the “small profits threshold” is £6,725.]

(5) Class 2 contributions under subsection (2) are to be payable in the same manner that Class 4 contributions in respect of relevant profits are, or would be, payable (but see section 11A for the application of certain provisions in relation to such Class 2 contributions).

[F6 (5A) Subsection (5B) applies to an earner who has, for the relevant tax year, relevant profits of, or exceeding, the small profits threshold but which do not exceed the lower profits threshold.

(5B) An earner to whom this subsection applies is treated, for relevant purposes, as having actually paid a Class 2 contribution under subsection (2) in respect of each week in the relevant tax year that the earner is in the employment.

(5C) “For relevant purposes” means for the purposes of provision made by or under an enactment that—

(a) is provision relating to benefits, or any other entitlement, provided for by or under an enactment, and

(b) applies by reference (however framed) to Class 2 contributions (whether or not the provision refers to contributions treated as paid).]

(6) If the earner does not have relevant profits of, or exceeding, the small profits threshold, the earner may pay a Class 2 contribution of [F7 £3.45] in respect of any week in the relevant tax year that the earner is in the employment.

(7) No Class 2 contributions are to be paid [F8 or treated as paid] under this section in respect of any week in the relevant tax year—

(a) before that in which the earner attains the age of 16, or

(b) after that in which the earner attains pensionable age.

(8) The Treasury may by regulations make provision so that, in relation to an earner, the Class 2 contribution in respect of a week is higher than that specified in subsections (2) and (6) where—

(a) in respect of any employment of the earner, the earner is treated by regulations made under section 2(2)(b) as being a self-employed earner, and

(b) in any period or periods the earner has earnings from that employment and—

(i) those earnings are such that (disregarding their amount) the earner would be liable for Class 1 contributions in respect of them if the earner were not so treated in respect of the employment, and

(ii) no Class 4 contribution is payable in respect of the earnings by virtue of regulations under section 18(1).

(9) The Treasury may by regulations—

(a) modify the meaning of “relevant profits”;

(b) provide that Class 2 contributions under subsection (6) may not be paid—

(i) if the employment or the earner is of a prescribed description, or

(ii) in prescribed circumstances.

(10) Regulations under subsection (9)(a) may amend this section.

(11) Regulations under subsection (9)(b) are to be made with the concurrence of the Secretary of State.]

Textual Amendments

F1 Ss. 11, 11A substituted for s. 11 (with effect for the tax year 2015-16 and subsequent tax years) by National Insurance Contributions Act 2015 (c. 5), Sch. 1 paras. 3, 35

F2 Words in s. 11(2) substituted (with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 2(2)

F3 Sum in s. 11(2) substituted (6.4.2023) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023 (S.I. 2023/236), regs. 1, 3(a)

F4 S. 11(4) substituted (with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 2(3)

F5 Sum in s. 11(4)(a) substituted (6.4.2023) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023 (S.I. 2023/236), regs. 1, 3(b)

F6 S. 11(5A)-(5C) inserted (with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 2(4)

F7 Sum in s. 11(6) substituted (6.4.2023) by The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2023 (S.I. 2023/236), regs. 1, 3(a)

F8 Words in s. 11(7) inserted (with effect from 6.4.2022) by The Social Security (Class 2 National Insurance Contributions Increase of Threshold) Regulations 2022 (S.I. 2022/1329), regs. 1, 2(5)