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  • Henry Reeves & Co.

Changes to Class 2 NIC

From 6 April 2015, Class 2 NIC will no longer be collected via six-monthly bills, instead it is being brought into the Self Assessment system and paid alongside your personal income tax and Class 4 NI liabilities.

Any businesses that hold a Small Earnings Exception Certificate will have this cancelled from April 2015. The newly called Small Profits Threshold will continue to exist, however, as the Class 2 NIC liability will be calculated based on the profits included in your Self Assessment Tax Return there is no longer a requirement for these Certificates. The Small Profits Threshold is set at £5,885 for 2015/16 and only when profits for the year exceed this figure will the Class 2 NIC charge become payable. The threshold and amount payable is likely to change each year.

Class 2 NIC count towards the ability to claim certain State Benefits such as the basic State Pension, Maternity Allowance and Bereavement Benefit. The changes mentioned above do not affect an individual’s entitlement to these benefits. If you have any questions and would like to get in touch, please call us on Maidstone: 01622 756849 or Chatham: 01634 846233.

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