If you currently pay your Class 2 National Insurance Contributions by Direct Debit Instruction (DDI) or have recently applied to do so, things are about to change! The Government announced plans to simplify the way self-employed people pay Class 2 National Insurance contributions from April 2015. Most self-employed people will be able to pay their Class 2 National Insurance contributions through Self Assessment, together with any income tax and Class 4 National Insurance contributions that are due.
HMRC are no longer accepting new Direct Debit applications to pay for Class 2 contributions. They will write to you to explain that instead of setting up a Direct Debit, they will send a payment request in April 2015 to ask for the payment of any outstanding Class 2 National Insurance contributions owed up to 11 April 2015.
Further information about alternative ways to pay Class 2 National Insurance payment requests can be found at GOV.UK
The planned changes from April 2015 mean that if you wish to defer the payment of Class 2/4 National Insurance contributions, you will no longer need to apply or re-apply for Class 2/4 deferment. On or around 17 December HMRC will be sending letters to all those self-employed people who have deferred payment of their Class 2/4 contributions to let them know they do not need to make another application. Any new applications to defer Class 2/4 National Insurance contributions HMRC receive will not be processed.
For more information on registering as self-employed and completing your tax return, please contact Alterledger.
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