19 July 2013.

HM Revenue & Customs (HMRC) plans to simplify the way self-employed people pay National Insurance Contributions (NICs) have been published for consultation.

HMRC is exploring whether it would be simpler and more straight-forward to collect these contributions alongside Class 4 NICs and Income Tax through the Self Assessment (SA) process. Self-employed people are required to file an annual SA return and the Class 4 NICs paid by self-employed people are already collected through SA.

The aim is to reduce the administrative burden on self-employed people. The self-employed and those who represent them are encouraged to respond to the consultation before the closing date of the 9th of October 2013. Based on the responses received, HMRC will review the current system of collecting Class 2 NICs.

The consultation document; Simplifying the National Insurance Processes for the Self-employed can be found at here.