Class 2 National Insurance (self employed)

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Class 2 National Insurance (“the stamp” in old money) stopped being collected by direct debit from 6 April 2016.  It is now collected as part of the self assessment bill for sole traders and partners.

The March 2016 budget announced that Class 2 National Insurance will be scrapped from 6 April 2018.  In the Government’s words “This represents an annual tax cut of £134 allowing 3.4 million of self-employed individuals to invest it back into growing their business”.  We suggest you remember these words as you pay your tax bill on 31 January 2020 when the effect will first be felt….election year no less.

David Wilsdon

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