Budget 2015: Class two national insurance abolished
Employer's NICs for people under 21 also abolished
CLASS TWO NATIONAL INSURANCE CONTRIBUTIONS are to be abolished after today’s Budget, the chancellor has confirmed.
Class two contributions are paid by self-employed people, including partners in firms, and amounts to £2.75 a week when profits are more than £5,885 a year.
Employer’s NICs for people under 21 was also abolished from 1 April, which the Treasury believes will benefit the employers of 1.5 million young people by £332 per employee on average.
“It’s a welcome simplification as it raises very little tax and is administratively burdensome,” BKL Tax partner Geraint Jones told Accountancy Age.