Call for views on simplifying NI for self-employed
Freelancers can now have their say on proposals to simplify the way that they and other self-employed people pay national insurance, thanks to a consultation from the taxman.
Aimed at reducing the burden on self-employed people, the proposals’ main thrust is to in future collect Class 2 NICs through the self-assessment system, alongside Class 4 NICs and income tax.
As the latter two liabilities are already collected when freelancers self-assess, HM Revenue & Customs says it may be “more straight forward” to include Class 2 NICs in that annual return process.
No increase in the amount of NICs that freelancers pay would result – despite calls to the contrary – and the move should, theoretically, “reduce the administrative burden” that freelancers face.
Advisors to the self-employed can join them in responding to the consultation, which closes of October 9th, and HMRC will review the current system of collecting Class 2 NICs based on the responses it receives.
31st July 2013