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Simplifying National Insurance for the self-employed

Press Release   •   Jul 19, 2013 10:23 BST

Plans to simplify the way self-employed people pay National Insurance Contributions (NICs) have been published for consultation by HM Revenue and Customs (HMRC).

HMRC is exploring whether it would be simpler and more straight-forward to collect these contributions alongside Class 4 NICs and Income Tax through the Self Assessment (SA) process. Self-employed people are required to file an annual SA return and the Class 4 NICs paid by self-employed people are already collected through SA.

This aims to reduce the administrative burden on self-employed people.

The self-employed and those who represent them are encouraged to respond to the consultation. The closing date is 9 October 2013 and, based on the responses received, HMRC will review the current system of collecting Class 2 NICs.

Notes for editors

1.  The consultation document Simplifying the National Insurance Processes for the Self-employed can be found at here.

2.  The consultation is open from 18 July to 9 October. It was announced at Budget 2013.

3.  The consultation outlines ways to reduce the burden on self-employed people, focusing specifically on collecting Class 2 NICs through Self Assessment. This is a process change and will not result in increased NICs liabilities for the self-employed.

4.  Follow HMRC on Twitter @HMRCgovuk

5.  HMRC’s Flickr channel

Issued by HM Revenue & Customs Press Office

HM Revenue & Customs (HMRC) is the UK’s tax authority.

HMRC is responsible for making sure that the money is available to fund the UK’s public services and for helping families and individuals with targeted financial support.