Class 2 NIC and payments on account

Class 2 NIC and payments on account

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Can anyone clarify the correct way to deal with class 2 NIC when reducing payments on account.

The situation we have is a self employed person who has had a large drop in profit so the 1st payment on account was enough to cover all the tax due for 2015/16.

The question is whether the class 2 for 2015/16 is due on 31 January 2017 so we reduce the payments on account to leave £145.60 payable or the payments on account should cover everything.

When looking at the calculation for the 2016/17 payments on account the class 2 is excluded (like student loan payments) so this would suggest the class 2 will always be paid in January?

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By Tim Vane
22nd Apr 2016 15:24

Class 2 is due in January, since it is paid in arrears (it is the class 2 for 2016). It has no bearing on the POA calculations, which are for the tax expected y/e 2017.

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