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 ...

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