nics

George Osborne has announced a change to how  Class 2 National Insurance Contributions are paid by combining them with Self Assessment from April 2016.

At the moment Class 2 NICs are paid by the self-employed every week at a flat rate of £2.70 a week. This will no longer be the case.

The Chancellor will now expect the self-employed to pay their contributions when they do their yearly Self Assessment. This will mean workers will not have to worry about Class 2 NICs every week, and instead be left to sort it all out only once a year hopefully saving on administration time. This should also mean a decrease in bureaucracy for HMRC.

The idea itself was suggested by the Office for Tax Simplification. HMRC and the Government have come under fire previously for overly complicated systems and set-ups, so anything done to help better this will be welcomed by those dealing with their own accounts.

This shows, at least, that the Chancellor is moulding some policy around the self-employed, a group often ignored in the yearly budget.