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Article ID: 3321
Last updated: 14 Jun, 2023
Changes to Class 2 NIC thresholdsPrior to the 2022/23 tax year you needed to pay Class 2 NIC if your profits were above the Small Profits Threshold. For 2022/23 onwards, you pay Class 2 NIC if your profits are above the Lower Profits Limit (which is £11,908 in 2022/23). When can I pay voluntary Class 2 NIC?If your profits are below the Small Profits Threshold (£6,725 in 2022/23 and 2023/24) then you can choose to pay voluntary contributions. If your profits from self-employment are between the Small Profits Threshold and the Lower Profits Limit then there is no Class 2 NIC to pay – instead you will be treated as making Class 2 NIC. This will mean you will be able to access entitlement to contributory benefits in the same way as if you had paid Class 2 NIC. For 2023/24 onwards, the Lower Profits Limit will be the same amount as the personal allowance for income tax (£12,570 for 2023/24). Class 2 NIC rates at a glance
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