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

Search Archive


Self-employed Class 2 NIC changes cancelled

Source: HM Government | | 12/09/2018

In a surprise move, the government has announced that, following a lengthy consultation, the planned abolition of Class 2 National Insurance Contributions (NIC) will not take place in the current parliament. The announcement was made in a written statement by Robert Jenrick MP, the Exchequer Secretary to the Treasury on 6 September 2018. The withdrawal of Class 2 NICs was originally due to take place from April 2018, but had been delayed until April 2019.

The written statement cited concerns relating to the impact on self-employed individuals with low profits. They would have suffered an increase in costs if they made voluntary NIC payments to maintain access to the State Pension. There were also concerns that the planned abolition of Class 2 NICs would have actually made the tax system more complex, at a time when the government is trying to simplify the tax code. The government have said that they will keep the issue under review 'in the context of the wider tax system and the sustainability of the public finances'.

Class 2 NICs are currently paid by self-employed taxpayers and members of partnerships if their annual profits are over £6,205. Class 2 NICs are payable at a flat weekly rate, currently £2.95. Class 2 NICs count towards payments such as the state retirement pension, the employment and support allowance, maternity allowance and bereavement benefits.

The government still intends to legislate for reforms to the NIC treatment of termination payments and income from sporting testimonials, set out in the draft NICs Bill.



25125805 m

 

 

Start ups require a quick response and have lots to do quite apart from the administrative setup of the business.  We provide a complete service.

Read more...

13282222 m

As a general practice we have expertise in a wide range of industries.  We are also statutory auditors, enabling us to prepare reports where that status is required. 

Read more...

24961532 m

Certainty of costs enable planning and confidence.  We have insurance schemes available.

Read more...

25332423 l

 

 

We provide a range of software to help run your business and enable easy interaction with us.

Read more...

Membership

 

About Us

Established in 1991 based in Epsom Surrey, CWM use technology to its fullest extent enabling us to work with clients based anywhere, with maximum efficiency resulting in lower costs.

Contact US

1a High Street
Epsom
Surrey
KT19 8DA
01372 727333

This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.cwmaccountants.com

Follow Us