National Insurance Changes – What do I need to know?

Since its introduction in 1911, National Insurance (NI) has developed from a form of protection against ill-health and unemployment to include a wider range of benefits.

It continues to change. It now helps people build entitlement to the state pension and other state benefits including maternity allowance and incapacity benefit. But if you don’t pay in, you don’t get the benefits!

Are you self-employed?

So as a self-employed person, have you contributed enough years? How will you know? One way to find out is to obtain a pension forecast.

NI rates for self-employed people depend on how much profit is made. But there is always the option to make voluntary contributions. The Real Business Club can help you do this.

Class Rates for 201TAT6/17
Class 2 £2.80 a week on profits of £5,965 and over
Class 4 9% on profits between £8,060 – £43,000 2% on profits above £43,000

 

From the 2015/16 tax year most self-employed people pay their NI contributions through self-assessment. If this is you, are you completing the right boxes on your Tax Return?

The government has announced that class 2 NI will be abolished from April 2018. At the same time class 4 will be reformed so that self-employed people can still build entitlement to state benefits. We don’t yet know how this will work, but we will continue to keep you informed of any changes.

Working Abroad?

At present people working abroad may not have to pay NI, but this will depend on where they work and how long they are abroad. If you work within the EU, you need to be aware that the Laws governing NI contributions may change as part of the UK’s exit from the EU. The rules for working outside the European Economic Area are more complicated. So advice and help is essential.

To get the correct help and advice for YOU, email or call Dawn [email protected]  0118 9680813

 

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