The following Personal Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
Sole traders and partners are liable to Class 2 and Class 4 national insurance contributions (NIC).
Class 2 NIC is a fixed weekly amount which from 2015/16 is paid annually through the Self Assessment Tax Return for the tax year. Class 4 NIC is charged as a percentage of earnings and the amount due is calculated and reported on the Self Assessment Tax Return for the tax year.
It had been expected that Class 2 NIC would be abolished from 6 April 2019, with Class 4 NIC reformed to include a contributory benefit test. However, it was announced on 6 September 2018 that the Government has abandoned this plan; Class 2 NIC will be retained in its current form.
Class 2 NIC is payable by self-employed earners and partners in a partnership aged between 16 and the state pension age.
The age at which individuals are entitled to a state pension is gradually increasing.
For men born before 6 December 1953 (accelerated from the previous date of 6 April 1959), the state pension age is 65 years. For those born after this date, the state pension age increases in tranches reaching 68 years for those born after 6 April 1978.
For women born after 6 April 1950, the state pension age increased gradually from 60 years until it reached 65 years for those born between 6 November 1953 and 5 December 1953 (accelerated from the previous date of 5 April 1955). From then on, the state pension age for a woman is aligned to that of a man so will eventually reach 68 years for those born after 6 April 1978.
There is a state pension age calculator on the GOV.UK website .
There is now a statutory requirement for the state pension age to be reviewed at least
Access this article and thousands of others like it free for 7 days with a trial of TolleyGuidance.
Read full article
Already a subscriber? Login