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Class 2 national insurance contributions may be payable by self-employed individuals (including partners in partnership) working in the UK and may also be paid voluntarily by those working overseas¹. Class 2 takes the form of a weekly contribution, although it is not actually paid weekly.

For 2023/24 and previous tax years, only those above a certain profit level are required to pay Class 2 contributions, although those below that threshold may wish to voluntarily pay Class 2 in order to preserve their entitlement to certain state benefits (including the state pension)². From 2024/25 onwards, Class 2 contributions are purely voluntary as the mandatory requirement to pay is to be removed³. The commentary below should be read in this context.

For an overview of Class 2 contributions, see E8.301. For the rate of Class 2 contributions, see E8.304.

The self-employed are liable to pay Class 4 national insurance contributions, which are calculated based on a percentage of their trading profits⁴. See E8.316.

This article considers the special rules