Class 2 National Insurance is a flat-rate contribution paid by self-employed people whose profits are above a set threshold. It counts towards entitlement to the State Pension and certain other contributory benefits.
How it is paid
Class 2 National Insurance is collected through Self-Assessment alongside Income Tax and Class 4 National Insurance. Voluntary Class 2 contributions can also be paid by those with profits below the threshold to protect their State Pension record.
Tax rules depend on individual circumstances and can change. This glossary is general information rather than personalised tax advice.