The collection of Class 2 NICs will now be through Self-Assessment so that the self-employed can pay their income tax and Class 2 and Class 4 NICs together through one process. This will start from the 2015-16 tax year onwards.
The existing six monthly bills and current direct debit payments will both cease during 2015. We will automatically cancel the customer’s DD following their last payment in July. The customer will not need to do anything.
The liability for Class 2 NICs will no longer be automatic. From 2015-16 onwards the self-employed will report their liability through their SA. Those that report a profit below a new Small Profits Threshold (SPT) will not be liable for Class 2 NICs, but they will be given the option to pay it voluntarily to protect their entitlement to contributory benefits. They will also be informed of the potential impact of choosing not to pay voluntary NIC. The SPT will be set equivalent to the Class 2 Small Earnings Exception (this is currently set at £5885).
Not sure how this will affect you? feel free to contact us at payroll@tipayroll.co.uk
This new change is going to make it a lot smoother to pay all your liabilities at the same time . Now you’re thinking really HMRC making it easier ? we were as shocked as you guys.
Have a great weekend
Kelly
