Policy paper

Abolition of Class 2 National Insurance contributions

This tax information and impact note advises that Class 2 contributions will be abolished and Class 4 contributions restructured to include a new threshold.

• From: HM Revenue & Customs
• Published: 5 December 2016
• Last updated: 7 November 2017 — See all updates

This publication was withdrawn on 7 September 2018

The government confirmed at Budget 2018 that it will not abolish Class 2 National Insurance contributions. You should read the guidance on National Insurance if you’re self-employed.

Documents

Abolition of Class 2 National Insurance contributions

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Details

Class 2 National Insurance contributions (NICs) will be abolished and Class 4 NICs restructured to include a new threshold (to be called the Small Profits Limit).

Update

On 2 November 2017 the Government announced a one year delay to the abolition of Class 2 NICs. Class 2 NICs will now be abolished from 6 April 2019 rather than 6 April 2018.

The delay will allow time for the government to engage with interested parties and Parliamentarians with concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits.

Published 5 December 2016
Last updated 7 November 2017 + show all updates

1. 7 November 2017

   Updated following the Government announcement that the abolition of Class 2 National Insurance has been delayed to 6 April 2019.

2. 5 December 2016

   First published.