A nice short blog today but with some very important information included!
This will effect anyone that is self-employed and files a self assessment tax return at the end of each year.
As of July 2015 you will no longer pay your National Insurance Class 2 on a monthly basis. The HMRC have now changed this payment system and the amount you owe throughout the year will be added to the payable amount when you complete your self assessment tax return.
This means you’ll need to keep the amount you usually pay for your Class 2 National Insurance safely away, ready for the end of each year.
Class 2 is applicable if your profits are £5,965 or more a year – this then changes to Class 4 once you earn over £8,060 or more a year and the rates are as follows:
Class 2 = £2.80 per week
Class 4 = 9% on profits between £8,060 and £42,385 and 2% on profits over £42,385
I hope that helps and if you want anymore information just contact me at firstname.lastname@example.org
Feel free to check out my Google+ Page