Class 2 National Insurance changes

Class 2 National Insurance changes

Class 2 National insurance is payable by sole traders and usually a small weekly/ monthly amount.

From April 2011, the way in which Class 2 NIC is payable will be changing. It will now match the self assessment dates of 31 January and 31 July. Only two bills per year will therefore be received.

For the first year only HM Revenue and Customs are going to delay the collection of monthly direct debits. This means that the payments normally due in April 2011 will be requested in August 2011. Payment will thereafter be required on a 6 monthly basis. A six monthly direct debit option can be opted.

Quite why HMRC are doing this, who knows but at least the amounts are not too large!

If you are not sure what Class 2NIC’s are, or want info on how to claim exemptions from it, please contact PAH Accounting for more information.