Pay Class 2 National Insurance if you do not pay through Self Assessment

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1. Overview

You pay Class 2 National Insurance contributions to help qualify for certain benefits like the State Pension if you’re self-employed.

This guide is also available in Welsh (Cymraeg).

Most people pay these contributions as part of their Self Assessment tax bill or their contributions are treated as having been paid.

But you may choose to pay Class 2 contributions if you:

You may also choose to pay because you are not eligible to be treated as having paid Class 2 contributions. This applies if you’re any of the following:

  • an examiner, moderator, invigilator or person who sets exam questions
  • a minister of religion who does not receive a salary or stipend
  • a person who makes investments - but not as a business and without getting a fee or commission
  • running a business involving land or property

If you do not pay through Self Assessment, you’ll need to register with HM Revenue and Customs (HMRC) to pay Class 2 contributions.

There’s a different way to pay if you work or live abroad.

Registering to pay Class 2 contributions

Check how to register with HMRC in order to pay.

You can register at any time, but check the deadlines for paying Class 2 contributions.

After registering

Once you’ve registered, HMRC will send you a payment request by the end of October telling you how much to pay. 

The payment request will include an 18-digit reference number that you’ll need in order to make a payment. 

You do not need an 18-digit reference number if you work or live abroad.

If after registering you do not get a payment request, contact HMRC.

How long payments take

Your payment request will give you a deadline to pay HMRC.

The time you need to allow depends on how you pay.

You can make same or next day payments:

You can pay within 3 days using online or telephone banking (by Bacs) or by cheque through the post.

Allow 21 working days to set up a Direct Debit if you have not set one up before.

If the deadline falls on a weekend or bank holiday, make sure your payment reaches HMRC on the last working day before it. You do not need to do this if you’re paying using online or telephone banking Faster Payments.

If you miss the payment deadline

You might have to pay more to fill gaps in your National Insurance record if you miss the deadline HMRC has given you.

HMRC will write and tell you how much you need to pay.

Confirmation of payment

You do not need to contact HMRC to check your payment has been received.

It will appear on your National Insurance record. This can take up to 8 weeks.

2. If you work or live abroad

You may be able to pay Class 2 National Insurance contributions if you’re either: 

  • living abroad but self-employed in the UK
  • self-employed abroad and you’ve got a certificate of coverage from HM Revenue and Customs (HMRC) to prove you do not need to pay social security contributions in the country you’re working in

The way Class 2 contributions are paid depends on how much profit you make.

If your profits are below £6,725 

You can pay voluntary Class 2 National Insurance contributions to protect your National Insurance record. 

You need to pay by making an online or telephone bank transfer.

If your profits are £6,725 or more

You do not need to pay Class 2 National Insurance contributions because they are treated as having been paid. This means your National Insurance record is automatically protected.

How to qualify

For your Class 2 contributions to be treated as having been paid, you must provide either:

  • formal profit and loss accounts 
  • 3-line accounts showing gross business takings or earnings, including any commission or tips, total expenses and net profit or loss figures

Send your accounts together with your full name, address and National Insurance number to:

Self-Employment Services
North East England
HMRC 
BX9 1AN

The deadline for sending your accounts is 31 January following the end of the tax year for which the Class 2 contributions are being treated as paid.

What happens next

HMRC will send you a payment request by the end of October.

Call the self-employed helpline  if you do not get one.

3. Pay online

You can pay Class 2 National Insurance directly using your online or mobile bank account if you’re living and working in the UK.

You’ll need:

  • your online banking details
  • the 18-digit reference number shown on your HMRC payment request

If you do not have an 18-digit reference number and you’ve already registered with HMRC, contact the National Insurance Helpline.

Your payment may be delayed if you use the wrong reference number.

When you’re ready to pay:

  1. Start your Class 2 National Insurance payment.

  2. Select the ‘pay by bank account’ option.

  3. You’ll then be directed to sign in to your online or mobile banking account to approve your Class 2 National Insurance payment.

The payment is usually instant but sometimes it takes up to 2 hours to show in your account.

Confirmation of payment

You do not need to contact HMRC to check your payment has been received.

It will appear on your National Insurance record. This can take up to 8 weeks.

4. Direct Debit

You can set up a Direct Debit to make regular payments from a UK bank account.

Allow 21 days to set up a new Direct Debit. 

HM Revenue and Customs (HMRC) will send you a letter telling you when payments will be taken and how much they will be. 

Payments will appear on your statement as ‘HMRC NI-DD’. HMRC will write to you if your payments change for any reason. 

If you have a question about your Direct Debit payments contact National Insurance enquiries.

5. Make an online or telephone bank transfer

You can pay by bank transfer using Faster Payments, CHAPS or Bacs.

Payments by Faster Payments (online or telephone banking) usually reach HM Revenue and Customs (HMRC) on the same or next day, including weekends and bank holidays.

CHAPS payments usually reach HMRC the same working day if you pay within your bank’s processing times.

Bacs payments usually take 3 working days.

Check your bank’s transaction limits and processing times before making a payment.

Paying from a UK bank account

You can pay HMRC by Faster Payments, CHAPS or Bacs, using the following details:

  • sort code - 08 32 20

  • account number - 12001004

  • account name - HMRC NIC Receipts

Reference number to use

If you’re paying from a UK bank account the reference number you need to use depends on whether you: 

  • live and work in the UK
  • live abroad
  • live in the UK but are paying for a period when you worked abroad 

Your payment may be delayed if you use the wrong reference number.

If you live and work in the UK you must use the 18-digit reference number shown on your HMRC payment request when you make a payment. Do not leave any spaces between the digits. 

If you do not have an 18-digit reference number and you’ve already registered with HMRC, contact the National Insurance Helpline.

If you either live abroad or live in the UK but are paying for a period when you worked abroad, you need to use a different reference number.

Use your National Insurance number followed by ‘IC’, your surname then your initial.

If your bank limits you to a certain number of characters, you should use your National Insurance number followed by ‘IC’ and as much of your surname as possible.

Example

If your name is Anne Jones, you’d write the reference as QQ123456AICJONESA

Paying from an overseas bank account

You can pay from an overseas account if you live or work abroad temporarily.

Use the following details:

  • account number (IBAN) - GB49 BARC 2020 4830 9447 93

  • Bank Identifier Code (BIC) - BARCGB22  

  • account name - HMRC NIC receipts

There’s a different way to pay Class 2 National Insurance if you live or work abroad permanently.

Reference number to use

Use your National Insurance number followed by ‘IC’, your surname then your initial.

If your bank limits you to a certain amount of characters, you should use your National Insurance number followed by ‘IC’ and as much of your surname as possible.

Example

If your name is Anne Jones, you’d write the reference as QQ123456AICJONESA

If you’re an employer paying for an employee living abroad, you should use your 13-character employer number.

Banking address  

HMRC’s banking address is:  

Barclays Bank PLC 
1 Churchill Place 
London 
United Kingdom 
E14 5HP

Confirmation of payment

You do not need to contact HMRC to check your payment has been received.

It will appear on your National Insurance record. This can take up to 8 weeks.

6. At your bank or building society

You can pay at a branch by cash or cheque. 

You’ll need your HM Revenue and Customs (HMRC) payslip. You’ll find this on the payment request HMRC sent you. 

If you pay between Monday and Friday, HMRC will accept your payment on the date you make it, and not the date it reaches HMRC’s account.

Make the cheque payable to ‘HM Revenue and Customs only’. 

Write your 18-digit reference number on the back of your cheque. You’ll find the reference number on the payslip or the payment request sent to you by HMRC.

If you do not have a payment request or reference number, you can get help from the National Insurance Helpline.

Your payment may be delayed if you use the wrong reference number.

Confirmation of payment

You do not need to contact HMRC to check your payment has been received.

It will appear on your National Insurance record. This can take up to 8 weeks.

7. By cheque through the post

You can pay by sending a cheque to:

HM Revenue and Customs 
National Insurance Contributions and Employer Office
BX5 5BD

Allow 3 working days for your payment to reach HMRC.

What to include

Make your cheque payable to ‘HM Revenue and Customs only’.

You’ll need:

  • the 18-digit reference number shown on your  HMRC payment request - write this on the back of the cheque
  • the payslip you were sent at the bottom of your HMRC payment request

Your payment may be delayed if you use the wrong reference number.

Do not fold your HMRC payslip or cheque, or fasten them together.

If you do not have an 18-digit reference number

If you’ve already registered with HMRC, contact the National Insurance Helpline.

If you do not have an HMRC payslip

Include a note with:

Confirmation of payment

If you want a receipt, include a note asking for one.

You can also check your National Insurance record. Allow up to 8 weeks for your payment to appear.