Class 2 National Insurance Contributions
13 December 2014, Advocates, Musicians, Sole Traders
Changes to Class 2 National Insurance payments
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.
The National Insurance numbercard issued by the former Department of Health and Social Security to Zacarias Moussaoui (Photo credit: Wikipedia)
How will I pay my Class 2 National Insurance?
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
Deferment of National Insurance Contributions
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.
Contact Alterledger
For more information on registering as self-employed and completing your tax return, please contact Alterledger.
