Class 2 National Insurance – Changes

There are changes to the way you pay your Class 2 National Insurance contributions if you are self-employed and these changes apply from 6th April 2015.

From HMRC:

About the Changes

From 6 April 2015 we’re changing the way we collect Class 2 National Insurance contributions from self-employed customers.

If you’re a Self Assessment customer and you fill in the Self-employment and/or Partnership pages on your Self Assessment tax return it means:

  • from 12 April 2015 your Class 2 National Insurance contributions will be collected through Self Assessment
  • if your profits are above the Small Profits Threshold of £5965 for the 2015 to 2016 tax year, you’ll be liable to pay Class 2 National Insurance contributions through your self assessment
  • if your profits are below the Small Profits Threshold, or you make a loss you’ll not be liable to pay Class 2 NIC’s. You’ll have the option to pay them voluntarily to protect your benefit entitlement

What Next

Complete your Self Assessment tax return as normal for tax years from 2015 to 2016 onwards. We’ll calculate any Class 2 and/or Class 4 NIC’s you need to pay using the information we hold and the information you provide on your tax return, and include it in your Self Assessment calculation.

Reasons to pay Class 2 NIC’s

Your payments count towards your State Pension and may allow you to claim these benefits:

  • Employment and Support Allowance
  • Maternity Allowance
  • Bereavement benefits
  • Jobseekers Allowance (Share-fishermen only)

Budget Payment Plan

If you would prefer to spread the cost of your tax and NIC’s a budget payment plan is available to self assessment customers who are up-to-date with their payments to us. For more information go to www.gov.uk/pay-self-assessment-tax-bill/budget-payment-plan

If you don’t fill in the self employed pages on your tax return or you’re not a self assessment customer you’ll continue to get a separate payment request for your Class 2 NIC’s once a year and can continue to pay as you do now.

BYB can help you with your self assessment tax return, budgeting for your tax and national insurance payments, and calculation of your liabilities.

10 Comments

  1. When will I receive my once a year Class 2 NIC separate payment request as per the penultimate paragraph of this letter.

    Reply
    • Your national insurance is now to be paid at the same time as your self assessment tax and so no separate payment request is sent out. This is a very recent change and is being implemented as we speak.

      Reply
  2. Who do I get in touch with to arrange my payment of my national insurance. Also how do I set up a budget plan to be taken each month out of my account as I was doing before it all changed, any help and advise would help.

    Mrs Tania Beddow

    Reply
    • To arrange payment of National Insurance call HMRC on 0300 200 3504

      Reply
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