NIM70550 - Class 2 National Insurance contributions: general information: general exceptions

Regulation 43 of the Social Security (Contributions) Regulations 2001 (SI 2001 No. 1004)

Up to 5 April 2024 a self-employed earner was excepted from paying Class 2 National Insurance contributions (NICs) for any contribution week:

• in respect of the whole of which the earner is in receipt of incapacity benefit
• in respect of the whole of which the earner is in receipt of Employment & Support Allowance
• throughout the whole of which the earner is incapable of work
• in respect of which she is in receipt of Maternity Allowance
• throughout the whole of which the earner is undergoing imprisonment or detention in legal custody
• in respect of any part of which the earner is in receipt of carer’s allowance or an unemployability supplement

A self-employed earner excepted from paying Class 2 NICs for any contribution week by virtue of the above may be entitled to National Insurance credits (Class 1 or Class 3) depending on the type of benefit involved.

From 6 April 2024

There is no liability to pay Class 2 NICs. A self-employed earner to whom the bullet points above apply shall not be treated as having actually paid Class 2 NICs. They may still be entitled to an NI credit if they were in receipt of a benefit. 

The self-employed earner is still entitled to pay voluntary Class 2 NICs subject to statutory time limits. For more information, see NIM72150.