Class 2 National Insurance Contributions are changing

With effect from April 2015, the government have announced that they will be collecting Class 2 National Insurance Contributions through Self Assessment.

What does this mean?

Under the current system, if you are self employed, you are sent a payment request every April to pay your Class 2 National Insurance Contributions, this is separate to your normal Tax bill. Under the new system, you will not need to pay the Class 2 National Insurance separately, it will be included in your Self Assessment bill when you complete your tax return.

What about the future?

In the Budget Speech in March 2015, the Chancellor announced that Class 2 National Insurance Contributions would be scrapped completely in the next parliament; further details will be announced later in 2015.

If you are self employed and have questions about your National Insurance Contributions or Self Assessment Tax Return, get in touch, we would be happy to help.