Class 2 National Insurance contributions

Exemptions from Class 2 National Insurance contributions

If you are under 16 or over state pension age, currently 65 for a man, 60 for a woman, you do not have to pay Class 2 National Insurance contributions (NICs).

You also do not have to pay Class 2 NICs for any complete week, Sunday to Saturday, for which you are:

• receiving Incapacity Benefit/Employment and Support Allowance
• receiving Maternity Allowance
• receiving Carer's Allowance or Unemployability Supplement to Industrial Injuries Benefit or War Disablement Benefit
• incapable of work even if you are not getting any benefit

You may be able to get credits for complete weeks of sickness, Sunday to Saturday, provided you apply to the Department for Work and Pensions for Employment and Support Allowance. If you are only sick for part of the week, even if you have a sick note, you must pay Class 2 NICs.

If you are a self-employed married woman or widow who is entitled to pay reduced contributions, you are not liable for Class 2 NICs.

Small earnings exceptions

If your earnings are less than £5,075 in 2009-10 you can apply for a Small Earnings Exception certificate by completing form CF10. Download leaflet CF10 from the HM Revenue & Customs (HMRC) website (PDF, 56K) - Opens in a new window.

You do not have to produce evidence of earnings to support your application, although the NICs Office may ask you for this at a later date.

You must apply for a certificate as soon as possible because they can only be backdated for up to 13 weeks before the date of application.

You can make an application to the NICs Office for refund of Class 2 NICs paid for a year where your earnings were below the exception limit. The application must be made no earlier than 6 April and no later than 31 January immediately after the end of the year.

If you do apply for an exception, you may lose entitlement to some benefits. See our guide on Class 3 National Insurance contributions.

You can still voluntarily pay Class 2 NICs even if you have a Small Earnings Exception certificate. Class 2 NICs will qualify you for more social security benefits and are currently cheaper than Class 3 voluntary NICs.

Use our interactive tool to identify the National Insurance contributions you must pay.

Subjects covered in this guide

• Introduction
• Paying Class 2 National Insurance contributions
• Exemptions from Class 2 National Insurance contributions
• Class 2 National Insurance contribution rates

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