However, in the case of our client’s we won’t need to complete these for 2015/16 as there has been a change in the way Class 2 NI is paid.
From 6 April 2015 Class 2 NI, like Class 4, will be payable with income tax through your self-assessment tax return. Therefore, any Class 2 NI calculated for the 2015/16 tax year will be due by 31 January 2017. For client’s with small earnings, Class 2 NI will only be due on that date if their profits are above the small profits threshold (previously small earnings limit). This has been set at £5,965 for the tax year 2015/16.
As Class 2 NI counts towards the state pension (& some other state benefits such as maternity allowance), it would still be advisable for people with profits below the small profits threshold, & not having any employment income, to take up the option of making voluntary Class 2 NI payments. This point assumes that those reaching state pension age on or after 6 April 2016 haven’t already reached the 35 years’ contributions needed to earn the maximum new flat-rate state pension.
Please note that Emerald Accountants Limited shall not be liable for any loss or damage arising out of the use of any of the information disclosed in this article…