NIM20800 - Class 2 National Insurance contributions liability: Small earnings from subsidiary self-employment: Administrative concession

Previously, a person who was in concurrent Class 1 and Class 2 employment did not need to pay Class 2 contributions or apply for SEE (NIM21000) if -

• Their earnings from Class 1 employment were at or above the Lower Earnings Limit (LEL - See NIM01005); and
• Their net earnings from self-employment were expected to be £1,300 or less in the tax year.

This was a concession and was not written into legislation.

Following the House of Lord’s decision in R v IRC, ex parte Wilkinson [2005] UKHL 30, HMRC reviewed administrative concessions and this one was removed.

Any person who was self-employed had to register as such and if they had low income from self-employment they had to claim SEE (see NIM21000) if they did not want to pay Class 2 contributions.