HMRC launch consultation for the self-employed: Simplifying the National Insurance processes


HM Revenue and Customs have published plans to simplify the way self-employed people pay National Insurance Contributions (NICs) for consultation, in order to reduce the administrative burden on self-employed people.

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HMRC are trying to establish whether it would be simpler and more straight-forward to collect these Class 2 NICs 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.

Self-employed people are urged to respond to the consultation, which had been announced in the last Budget, by the 9th October. Based on the answers received, HMRC will then review the current system of collecting Class 2 NICs.

HMRC are keen to point out that this is a process change and will not result in increased NICs liabilities for the self-employed.

The consultation document entitled "Simplifying the National Insurance Processes for the Self-employed" can be found at here.

If you are a self-employed individual and have any tax queries or would like further information about Mitchell Charlesworth's tax services, please complete a quick enquiry form here or contact your nearest office for advice.

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