GET IN TOUCH NOW
Reading -0118 9885822,Basingstoke -01256 409068
This email address is being protected from spambots. You need JavaScript enabled to view it.

 

 

 

Why don’t we still pay Class 2 NIC monthly?

Source: HM Revenue & Customs | | 06/12/2017

Class 2 national Insurance contributions (NICs) are paid by self-employed taxpayers and members of partnerships if their annual profits are over £6,025. Class 2 NICs are payable at a flat weekly rate currently, £2.85. Class 2 NICs count towards payments such as the state retirement pension, the employment and support allowance, maternity allowance and bereavement benefits. The withdrawal of class 2 NICs was due to take place from April 2018 but has now been delayed until April 2019.

The collection of class 2 NICs changed with effect from the 2015-16 tax year and is now made through the existing self-assessment system together with income tax and class 4 NICs. A liability to class 2 NIC should be reported on an individual’s self-assessment tax return and any payment of class 2 NICs relating to 2016-17 will become due on 31 January 2018. The option to make a monthly payment is no longer generally available, however it is possible to set-up a Budget Payment Plan and continue making payments in instalments.

Planning note

A limited number of self-employed taxpayers don’t pay tax through self-assessment (such as a non-UK resident who is self-employed in the UK). If this is the case, HMRC should contact you to make separate payment arrangements.

 

Latest news

Newsletter

With our newsletter, you automatically receive our latest news per e-mail and get access to the archive including advanced search options!

» Sign up for the newsletter
» Login

 

 

 

 

 

 

     

 

Accountant Reading ~ Tax Returns Reading ~ Company Accounts Reading ~ Bookkeeping Reading ~ Accountants Reading
Accountant Berkshire ~ Accountants Berkshire ~ Accountants

Search Engine Optimisation (SEO) By Unitel Direct
Get Listed With Business Internet Finder | Find Business In The UK