Changes to how Class 2 National Insurance is Collected

From 6 April 2015 if you are self-employed, class 2 national insurance will now be collected via your self-assessment tax return and form part of your tax liability. This is great news as it reduces the administration process and paperwork associated with making payments and reclaiming through exemptions. Class 2 NI (2015/16) is currently £2.80 per week. In addition to this, if you are both self-employed and employed, the collection of class 2 national insurance can also form part of your PAYE tax code. If you would prefer to have your national insurance collected via your self-assessment tax return, please contact HMRC to have this removed from your tax code. Class 2 NI will still be collected in the ‘normal way’ until July 2015 as the NI is collected in arrears.

Should you have any queries, please contact Reshma Johar at reshma.johar@raffingers-stuart.co.uk.