Class 2 National Insurance
Class 2 NI was set to be abolished in April 2018. However, Mr Osborne has extended class 2 national insurance contributions for another year, until April 2019.
In 2018/19, Class 2 national insurance is payable for sole traders with a profit over £6,205, at a flat rate of £2.95 per week. This is payable by the 31st January 2019; as with any other tax and national insurance liability. You can voluntarily pay class 2 national insurance if your profits are below this level.
From April 2019 if you earn between the small profits and lower earnings level, where class 4 national insurance kicks in, you will automatically gain a qualifying year.
If you would like to discuss your national insurance contributions, please contact Kayleigh@darceyandbateaccountants.co.uk