{"id":290,"date":"2011-01-04T16:53:43","date_gmt":"2011-01-04T16:53:43","guid":{"rendered":"http:\/\/www.forestsoftware.co.uk\/blog\/?p=290"},"modified":"2011-03-09T15:32:41","modified_gmt":"2011-03-09T15:32:41","slug":"self-employed-class-2-nics-new-payment-arrangements","status":"publish","type":"post","link":"https:\/\/www.forestsoftware.co.uk\/blog\/2011\/01\/self-employed-class-2-nics-new-payment-arrangements\/","title":{"rendered":"Self Employed Class 2 NICs &#8211; New Payment Arrangements"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes : <\/span><\/span><p>If you are a self employed you will know that you should currently pay class 2 national insurance contributions (NICs) at a flat rate of \u00a32.40 per week in 2010\/11 (this rises to \u00a32.50 per week\u00a0from April 2011 and\u00a0this new rate will apply to the tax years\u00a02011\/12 onwards).<\/p>\n<p>At the moment, these contributions are paid by quarterly account billing or by monthly direct debit.\u00a0However from\u00a0April 2011 onwards, the due dates for payment will be aligned with the self assessment payment dates\u00a0for income tax and Class 4 NICs.\u00a0 This will mean that the payment dates\u00a0will change for 2011\/12.<\/p>\n<p>If you are self-employed and do not currently pay by direct debit\u00a0 you will receive just two payment requests from HM Revenue &amp; Customs (HMRC) in the year (instead of four bills) in October and April, showing payments due by 31 January and 31 July respectively. You do not need to wait until the due date to make payment.<\/p>\n<p>If you curently pay bu direct debit,\u00a0to meet the new due by dates, collection of monthly Direct Debit payments will be delayed by HMRC to bring the payment dates into line. This means that:<\/p>\n<ul>\n<li>for the first year only, monthly Direct Debits will stop for a short period and then start again<\/li>\n<li>Class 2 contributions due for April 2011 will be requested from your bank in August 2011<\/li>\n<li>payments thereafter will be monthly unless you choose to pay 6 monthly from April 2011 (A new option to pay by 6 monthly Direct Debit, collected in January and July each year, will be available from April 2011 for those who do not wish to spread their payments on a monthly basis).<\/li>\n<\/ul>\n<p>The end result of these changes\u00a0mean that by January 2012 six instalments will have been paid, equal to half the liability for the year. By July 2012, the liability for the year will have been paid in full. Unlike income tax and Class 4 NICs there will be no balancing payment on 31 January 2013, as Class 2 is a set amount and does not need to be estimated.<\/p>\n<p>As already mentioned above, there will be an alternative option to pay Class 2 by two six monthly direct debits, one on 31 January in the tax year and one on 31 July following the end of the tax year, instead of paying monthly direct debits.<\/p>\n<p>More information on these Class 2 NIC changes can be found on the <a title=\"Class 2 NIC Changes - HMRC Announcement\" href=\"http:\/\/www.hmrc.gov.uk\/payinghmrc\/news-nic2-payments.htm\" target=\"_blank\">HMRC website<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes : <\/span><\/span>If you are a self employed you will know that you should currently pay class 2 national insurance contributions (NICs) at a flat rate of \u00a32.40 per week in 2010\/11 (this rises to \u00a32.50 per week\u00a0from April 2011 and\u00a0this new rate will apply to the tax years\u00a02011\/12 onwards). At the moment, these contributions are paid [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11,4],"tags":[],"class_list":["post-290","post","type-post","status-publish","format-standard","hentry","category-accounting","category-business-advice"],"_links":{"self":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/290","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=290"}],"version-history":[{"count":0,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/290\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=290"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=290"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.forestsoftware.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=290"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}