Changes to Class 2 National Insurance collection


We now have further details of how the changes, reported back in March 2014, to the collection of Class 2 National Insurance will operate. (These are subject to Parliamentary approval.)

Rather than the current system of collecting Class 2 National Insurance separately, this will be combined with collection of the tax and Class 4 National Insurance which will simplify matters for the self-employed.

There is no action required at present, the changes are planned to come into effect from 11th April 2015 onwards.

In April 2015 taxpayers will receive their final payment request from the existing process and in July 2015 the final direct debit payments will be collected.

Going forwards, in the 2015/16 tax return the computations will also include Class 2 National Insurance as well as tax and Class 4 contributions. These will be collected as normal in the balancing payment due on 31st January 2017.

There will also be a reduction in administration, as those who hold small earnings exemption certificates will no longer require these to be renewed from March/April 2015.

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