Class 2 National Insurance Contributions (NICs) are paid by self-employed people to qualify for certain state benefits, including the State Pension. They’re a flat weekly rate and apply if your profits are above a set threshold (called the Small Profits Threshold). Even if your earnings are below this level, you can choose to pay voluntarily to protect your benefit record. It’s a small, regular payment that can have a big impact on your future entitlements. (See also: Class 4 NICs.)
« Back to Glossary Index
Tax Guide UK Editorial Team: Our team of financial writers, tax researchers, and editors is dedicated to making UK tax easier to understand — and easier to manage. Every article is thoroughly researched, regularly updated, and written in plain English to help you stay compliant and confident.View Author posts