Class 2 to be collected through self-assessment
A positive change is taking place to the way in which National Insurance (NI) is paid. Similar to the Class 4 NI, Class 2 will now be paid through the self-assessment tax calculation rather than by monthly or quarterly direct debit, or on invoice.
This is considered a little helping hand to reducing the admin of small business owners. The small NI contribution is far better dealt with as part of self-assessment than having another invoice to pay and file.
[dropshadowbox align=”center” effect=”lifted-both” width=”460px” height=”” background_color=”#ffffff” border_width=”1″ border_color=”#dddddd” ]Currently, self employed business owners are required to pay Class 2 NI when their profits reach over £5,885 per year (14/15).
Small earnings exemption applies for profits below this level.
From 11 April
In the coming month or two, taxpayers who pay Class 2 NI will receive a statement detailing the final amount they owe under the current system, which will be due for payment by the usual methods. After this the system will change.
No requirement to defer Class 2 NI
Subsequently, the deferment of Class 2 NI will no longer be required. New forms will be rejected and letters were sent to those relevant NI payers in December informing them that further deferments are not necessary under the new system.
Figurit help commercial business owners of all shapes and sizes with their tax compliance as well as ways to streamline and systemise their business better. Call one of our team to discuss your situation.
T: 020 7376 9333