Class 2 National Insurance rates for 2024/25

Class 2 National Insurance: what you need to know

National Insurance is money paid to HMRC by employees, employers, and the self-employed. Class 2 National Insurance is paid voluntarily by some self-employed people. You can find out more about National Insurance on our accounting glossary.

Who has to pay Class 2 National Insurance?

From April 2024, no one will be required to pay Class 2 self-employed NI contributions.

Those with profits above £12,570 will no longer have to pay Class 2 NICs, but will still receive access to contributory benefits including the State Pension.

Those with profits between £6,725 and £12,570 will continue to get access to contributory benefits, including the State Pension, through a National Insurance credit, but they won’t actually have to pay any National Insurance.

Those with profits under £6,725 and others who pay Class 2 NI contributions voluntarily to get access to contributory benefits including the State Pension (for example, some overseas workers) will continue to be able to do so.

The main rate of Class 2 NI contributions had been due to rise to £3.70 per week in April 2024. But for those paying voluntarily, the current rate of £3.45 per week will be maintained for 2024-25.

How to pay Class 2 National Insurance contributions

Class 2 National Insurance contributions are calculated annually as part of your Self Assessment tax return. The total amount of contributions due will be included in the overall bill. This is sent to you following completion of your return and includes any Income Tax you owe.

Online or telephone banking: If you’re paying by online or telephone banking (Faster Payments, CHAPS or Bacs) details for the HMRC bank account you should pay your tax bill into on the government's website.

Debit card or business credit card: If you are paying by debit or credit card you can do so by following the links from your HMRC online account.

Direct Debit: You can set up a Direct Debit from your HMRC online account. The first time you set up a Direct Debit for Self Assessment allow at least five working days the before you submit your return to ensure the payment is taken from your account in time. Thereafter allow for at least three days. Note that you have to set up a new direct debit every time you wish to make a payment and that payment on account requires a separate Direct Debit.

At your bank or building society: You can only pay your Income Tax bill at your bank or building society if you still get paper statements from HMRC and have the paying-in slip they sent to you in the post. Payments can be made by cash or cheque made payable to ‘HM Revenue and Customs only’ followed by your Unique Taxpayer Reference (UTR) followed by the letter ‘K’.

Previous Class 2 National Insurance rates