The abolition of Class 2 National Insurance contributions (NICs), reforms to the NICs treatment of termination payments, and changes to the NICs treatment of sporting testimonials have been delayed by one year.
Andrew Jones, Exchequer Secretary to the Treasury, announced that the National Insurance Contributions Bill would be introduced in 2018, however the changes would not come into effect until April 2019.
The delay has been implemented to allow time to engage with interested parties about the concerns relating to the impact of the abolition of Class 2 NICs on self-employed individuals with low profits.
‘The government has committed to abolishing Class 2 NICs to simplify the system, so it is therefore right to take the time to ensure that there are no unintended consequences for the lowest paid,’ said Jones in a written statement.
The draft legislation on these three changes can be found here.
