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UK Class 2 contribs on the way out (again)
Posted: Wed May 12, 2021 2:26 am
by adamu
I noticed in the government is planning on introducing a National Insurance Contributions Bill later this year.
It's very likely that it will include the abolition of Class 2 payments, meaning all voluntary contributions will need to be Class 3.
We can't know for sure yet, but it looks like it's back on the table. Here's the consultation from 2015 before they got distracted with Brexit and Coronavirus:
https://www.gov.uk/government/consultat ... f-employed
It was announced in the Queen's Speech, although the bill name is only in the written version:
https://www.gov.uk/government/speeches/ ... peech-2021
Re: UK Class 2 contribs on the way out (again)
Posted: Wed May 12, 2021 3:01 am
by Beaglehound
Not to say it won’t happen, but the purpose of the bill (page 70 in the link, reading the whole thing definitely not recommended) seems to be different.
https://assets.publishing.service.gov.u ... Notes..pdf
Re: UK Class 2 contribs on the way out (again)
Posted: Wed May 12, 2021 3:06 am
by adamu
Oh, nice link, thanks. That's good to see, so it might be safe after-all.
Ensuring self-employed people who must, or have had to, self-isolate due to
COVID-19 have parity with employed people and do not pay National Insurance
contributions on their self-isolation support payments.
This sounds like it could touch Class 2, so we'll have to see. As you said, it doesn't seem to be the focus.
Re: UK Class 2 contribs on the way out (again)
Posted: Thu May 13, 2021 12:23 pm
by Roger Van Zant
I pay about fifteen quid per month for class 2 contributions. How much would class 3 be per month?
Re: UK Class 2 contribs on the way out (again)
Posted: Thu May 13, 2021 12:24 pm
by adamu
Roger Van Zant wrote: ↑Thu May 13, 2021 12:23 pm
I pay about fifteen quid per month for class 2 contributions. How much would class 3 be per month?
https://www.gov.uk/voluntary-national-i ... ions/rates
The rates for the 2021 to 2022 tax year are:
£3.05 a week for Class 2
£15.40 a week for Class 3
5 times more expensive, but still not bad.
Re: UK Class 2 contribs on the way out (again)
Posted: Thu May 13, 2021 12:35 pm
by RetireJapan
I pay class 3: they're a good deal, but not free money like class 2
Re: UK Class 2 contribs on the way out (again)
Posted: Sat May 15, 2021 9:52 am
by Roger Van Zant
adamu wrote: ↑Thu May 13, 2021 12:24 pm
Roger Van Zant wrote: ↑Thu May 13, 2021 12:23 pm
I pay about fifteen quid per month for class 2 contributions. How much would class 3 be per month?
https://www.gov.uk/voluntary-national-i ... ions/rates
The rates for the 2021 to 2022 tax year are:
£3.05 a week for Class 2
£15.40 a week for Class 3
5 times more expensive, but still not bad.
I would still pay even class 3. Still pretty cheap.
Re: UK Class 2 contribs on the way out (again)
Posted: Thu Jul 29, 2021 2:20 pm
by beanhead
I just got accepted for Class 2.
I will backpay the 15 years they have offered me while I can.
If the only option in the future is Class 3, so be it. But 15 years at about 160 quid a year is a bargain!
Re: UK Class 2 contribs on the way out (again)
Posted: Thu Jul 29, 2021 3:24 pm
by RetireJapan
beanhead wrote: ↑Thu Jul 29, 2021 2:20 pm
I just got accepted for Class 2.
I will backpay the 15 years they have offered me while I can.
If the only option in the future is Class 3, so be it. But 15 years at about 160 quid a year is a bargain!
Congratulations!
Re: UK Class 2 contribs on the way out (again)
Posted: Thu Jul 29, 2021 11:05 pm
by JapaneseMike
beanhead wrote: ↑Thu Jul 29, 2021 2:20 pm
I just got accepted for Class 2.
I will backpay the 15 years they have offered me while I can.
If the only option in the future is Class 3, so be it. But 15 years at about 160 quid a year is a bargain!
Nice result - no matter how much it cost you in time/phone-calls/frustration!
