NICs set to get simpler for self-employed

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National Insurance Contribution is set to get simpler for the self employed.

Plans to simplify the way self-employed people pay national insurance contributions (NICs) have been published for consultation by HM Revenue & Customs (HMRC).

HMRC launched the consultation on 18 July to explore whether it would be simpler and more straightforward to collect these contributions alongside Class 4 NICs and Income Tax through the self assessment process.

Self-employed people are required to file an annual tax return and the Class 4 NICs they pay are already collected through self assessment.

HMRC said the proposed approach was designed to reduce the administrative burden on self-employed people and would not result in any increase in their NIC liabilities.

The closing date is 9th October 2013 and, based on the responses received, HMRC will review the current system of collecting Class 2 NICs.