NIM70200 - Class 2 National Insurance contributions: general information: contribution week

Regulations 1(2) and 155 of the Social Security (Contributions) Regulations 2001 (SI 2001 No 1004)

From 6 April 2022 a self-employed earner is only liable to pay Class 2 NICs if the earner’s relevant profits exceed the Lower Profits Threshold (LPT). In such circumstances, Class 2 NICs are due for the relevant tax year at the weekly flat rate in respect of each contribution week or part of a week that a person is self-employed.

A ‘contribution week’ is defined as a period of 7 days beginning with midnight between Saturday and Sunday. The first day of the contribution week is Sunday and Saturday is the last. The first week of the contribution year starts on the first Sunday after 5 April.

Some contribution years will include 53 contribution weeks, a person who is self-employed for the full year will be liable for all 53 weeks.

Example

The first contribution week of the 2021 to 2022 tax year starts on Sunday, 11 April 2021 and the last contribution week of that year ends on Saturday, 9 April 2022.

From 6 April 2024 the LPT was removed which means that liability to pay Class 2 NICs no longer exists.  If the earner's relevant profits are at or above the Small Profits Threshold (SPT), they are treated as having actually paid Class 2 NICs in respect of each contribution week or part of a week they are self-employed.

Some contribution years will include 53 contribution weeks, a person who is self-employed for the full year will be treated as having actually paid Class 2 NICs for all 53 weeks, if their relevant profits are at or above the SPT.