Treasury delays NIC hike for self-employed

Pushed back from April 2018 to 2019

Victoria McKeever
clock • 2 min read

The Treasury has confirmed it will delay increases to national insurance contributions (NICs) for the self-employed for a year to April 2019.

The NICs bill is set to scrap Class 2 NICs, where those who are self-employed and earning below the small profits threshold of £6,025 can pay a weekly rate of £2.85 in order to receive state pension entitlements.  Under the new rules introduced in 2019 this group will have to pay a voluntary Class 3 NICs rate in order to gain the same entitlement, which is currently set at £14.25 - more than four times the Class 2 rate.  In a statement secretary to the Treasury Andrew Jones said: "The government has decided to implement a one year delay to allow time to engage with interested parties ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

P1 platform to offer Business Relief ahead of pension IHT changes

P1 platform to offer Business Relief ahead of pension IHT changes

Partnership with PXN Investments

Sophia Panayi
clock 15 September 2026 • 3 min read
Predictions and the value of financial advice

Predictions and the value of financial advice

'If there is one profession that has had to become comfortable with uncertainty, it is ours'

Andrew Aldridge
clock 10 September 2026 • 7 min read
Majority of advisers want CGT reporting in platform tax packs

Majority of advisers want CGT reporting in platform tax packs

Some 39% of advice firms cite tax planning as a priority

Sophia Panayi
clock 09 September 2026 • 1 min read