Could Class 2 NICs move to self assessment?
Employees missed out on the big Budget announcements regarding national insurance, but there was a nod towards simplifying NICs for the self employed in HMRC’s overview of tax and legislation rates.
The government will hold a consultation on using self assessment to collect class two NICs, alongside income tax and class 4 NICs, with plans for legislative changes to follow.
This would mean that instead of weekly class two NIC payments, the self employed would pay the contributions yearly in their self assessment.
The majority of those self employed pay two different classes of national insurance. Class four is amalgamated with self assessment and dependent on profits, while class two is a flat rate weekly amount.