The end of Class 2 NIC via Direct Debit

Budgets, National Insurance, Personal Tax l

NI StampsMany people still refer to these contributions as “stamps” from the days when you actually bought a National Insurance stamp from the Post Office to stick on a card.

Nowadays the flat rate of £2.75 per week is paid either by monthly or 6 monthly direct debit, in arrears, or on receipt of a bill from HMRC.

With effect from year 2015/2016 your Class 2 NICs liability will be established within your Self Assessment Tax Return and will be payable alongside Income Tax and Class 4 NICs which are based on the level of profits from self employment.

The final direct debit payments will be taken on 10 July 2015 for the period ended 11 April 2015.