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Chartered AccountantsHMRC is reviewing how to simplify National Insurance processes for the self-employed, including whether to collect Class 2 National Insurance Contributions (NICs) alongside Class 4 NICs and income tax using the self-assessment system, reports Harris & Co Chartered Accountants Northampton.
The department says it has held informal discussions with a small number of self-employed people to understand their experience of the current system and is now seeking feedback on the plans from interested individuals, agents who act on the behalf of self-employed people and bodies that represent self-employed people.
The consultation was announced in Budget 2013 and follows suggestions from the Office of Tax Simplification (OTS) in its 2012 Review of Small Business which recommended that the government review the NI payment process for self-employed people to reduce the administrative burdens of paying Class 2 NICs.
The OTS review specifically identified the Small Earnings Exception (SEE) processes and the deferment process as driving particular complexity within the NICs.
