Policy paper

Abolition of Class 2 National Insurance contributions

This tax information and impact note advises that Class 2 contributions will be abolished and Class 4 contributions restructured to include a new threshold.

Documents

Details

Class 2 National Insurance contributions (NICs) will be abolished and Class 4 NICs restructured to include a new threshold (to be called the Small Profits Limit).

Update

On 2 November 2017 the Government announced a one year delay to the abolition of Class 2 NICs. Class 2 NICs will now be abolished from 6 April 2019 rather than 6 April 2018.

The delay will allow time for the government to engage with interested parties and Parliamentarians with concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits.

Published 5 December 2016
Last updated 7 November 2017 + show all updates
  1. Updated following the Government announcement that the abolition of Class 2 National Insurance has been delayed to 6 April 2019.
  2. First published.