Self Employed – Class 2 National Insurance Contributions.

This is a reminder that Class 2 NIC will be collected through your self-assessment tax return, going forward.  The weekly rate for Class 2 NIC is currently £2.80 per week, meaning that £145.60 will be collected and form part of your balancing payment due on 31 January 2017.

Low Profits – Special Circumstances.

Under the existing system, individuals expected to have a low amount of earnings for the tax year could apply for a Small Earnings Exception Certificate.  This is now no longer needed under the new system, if the assessable trading profits submitted to HMRC are below the Small Profits Threshold, no Class 2 NIC is due.  However, an individual can pay voluntary Class 2 NIC in order to maintain a contribution record for contributory benefits (for example State Pension)