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Budget 2015: Class two national insurance 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.

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