Plans to simplify the way self-employed people pay National Insurance Contributions (NICs) have been published for consultation by HM Revenue and Customs (HMRC).
HMRC is exploring whether it would be simpler and more straight-forward to collect these contributions alongside Class 4 NICs and Income Tax through the Self Assessment (SA) process. Self-employed people are required to file an annual SA return and the Class 4 NICs paid by self-employed people are already collected through SA.
This aims to reduce the administrative burden on self-employed people.
The self-employed and those who represent them are encouraged to respond to the consultation. The closing date is 9 October 2013 and, based on the responses received, HMRC will review the current system of collecting Class 2 NICs.
The consultation document Simplifying the National Insurance Processes for the Self-employed can be found at here.
The consultation is open from 18 July to 9 October. It was announced at Budget 2013.
The consultation outlines ways to reduce the burden on self-employed people, focusing specifically on collecting Class 2 NICs through Self Assessment. This is a process change and will not result in increased NICs liabilities for the self-employed.
If you’re self-employed and need help or advice contact Davenports Accountancy today on 0845 351 0381