The collection of Class 2 contributions from 2015-16 onwards, will be through the self-assessment system.
Class 2 NICs can now be paid together with income tax and Class 4 NICs in one amount on the 31 January following the end of the tax year. The way that most people have paid Class 2 contributions in the past is monthly by direct debit. From now on those who wish to continue paying their contributions more regularly can set up a Budget Payment Plan (assuming they are up to date with their self-assessment payments) and make payments weekly or monthly by direct debit in advance of the payment deadlines.
In the spring Budget 2015, the government announced its intention to abolish Class 2 NICs. Not many details have been announced to date. It appears that after the abolition of Class 2 NICs, the self-employed will continue to pay Class 4 NIC, but this will be subsequently reformed to include a contributory benefit test.
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