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500% Increase in NIC from 2017!

Discussion in 'General Business Forum' started by Hash and Bash, Mar 17, 2016.

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  1. Hash and Bash

    Hash and Bash UKBF Regular Free Member

    319 63
    You may have noticed in this week's Budget that Class 2 NI contributions are going to be abolished from 2017.

    This means that self-employed earning below the Small Profits Threshold (£5965 for 2015/16) will no longer be able get contributory benefit contributions towards their state pensions (by paying Class 2 voluntarily).

    Those earning above the small profits threshold but below the Lower Profits Limit for Class 4 NI contributions will earn what is classed as zero rate band Class4 NI contributions and will qualify for contributions towards the state pension.

    In order for those caught below the small profits threshold, to accumulate contributions towards the state pension, they will have to purchase Class 3 voluntary NI contributions.
    Class 3 currently cost £14.10 per week as opposed to £2.80 per week for Class 2 - An increase of over 500%.
     
    Posted: Mar 17, 2016 By: Hash and Bash Member since: Nov 8, 2012
    #1
  2. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

    11,426 3,561
    No different from employed earners at that level.
     
    Posted: Mar 17, 2016 By: David Griffiths Member since: Jun 21, 2008
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