The Treasury has confirmed it will delay increases to national insurance contributions (NICs) for the self-employed for a year to April 2019.
The NICs bill is set to scrap Class 2 NICs, where those who are self-employed and earning below the small profits threshold of £6,025 can pay a weekly rate of £2.85 in order to receive state pension entitlements. Under the new rules introduced in 2019 this group will have to pay a voluntary Class 3 NICs rate in order to gain the same entitlement, which is currently set at £14.25 - more than four times the Class 2 rate. In a statement secretary to the Treasury Andrew Jones said: "The government has decided to implement a one year delay to allow time to engage with interested parties ...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes