Class 2 National Insurance contributions
Tax Information and Impact Note about changes to the collection of Class 2 National Insurance contributions.
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The measure will change the mechanism for collecting Class 2 National Insurance Contributions. It will enable self-employed customers to pay their Class 2 National Insurance contributions through Self Assessment alongside Income Tax and Class 4 National Insurance contributions.
The measure will also change the structure of Class 2 National Insurance contributions so that only those with profits (chargeable to tax under Chapter 2, Part 2 Income Tax (Trading and Other Income) Act 2005) above a profits threshold will be liable - those without profits or with profits below this threshold will be able to pay Class 2 National Insurance contributions voluntarily.