The government have announced that Class 2 NICs, which were due to be abolished from April 2018, will remain for one more year, until April 2019.
The National Insurance Contributions (NICs) Bill will be introduced into parliament for discussion in 2018, but it includes a delayed abolition of Class 2 NICs.
Class 2 NICs, payable by the self-employed at a rate of £2.85 per week for 2017/18 (£2.95 for 2018/19), will now remain until 6 April 2019, as opposed to 6 April 2018, as originally intended following HMRC consultation.
The delay is to enable government to engage in discussions with various interested parties, in particular on how the abolition will affect self-employed individuals with low profits.
The one year delay will also apply to the revised NIC treatment on termination payments and NICs on sports testimonials.
Links
Self-employed: check your NI record before 5 April
Abolishing Class 2 NICs: consultation response
Termination, redundancy and leaving payments
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