rpjs

I should imagine that the majority of us here paying voluntary NICs will be paying Class 3, but those paying Class 2 may want to find out what impact this proposal will have on those making voluntary contributions from overseas.

jb82

I had a letter from HmRC saying my direct debit for voluntary class 2 would continue. I believe the class 2 ni is not being abolished but that it is going to be collected via self assessment rather than paid separately. Those who do not self assess like those overseas should continue to pay as normal.

rpjs

Apparently they're going to abolish "tax returns" too, so not sure how self-assessment's supposed to work going forward.

OCKF

Its only the old fashion tax return being abolished so you will have an account and do everything online.

nun

Good luck doing an online form and getting the interaction of UK domestic taxes with tax treaties and international taxation correct. At least with paper forms you can add comments and adapt them to your circumstances.

nun

I'd expect most people who grew up in the UK and now work abroad to be paying Class 2 NI.

Any link about changes to NI rather than an naked statement.

nun

From The Guardian Budget feed Budget 2015: Osborne introduces tax-free savings and Help-to-Buy ISAs - live updates | Politics | The Guardian

If Class 2 is to be abolished does that mean that the self employed won't have to pay NI anymore? This sounds like a long term plan to get rid of NI and many of the benefits it pays for.

If tax returns are abolished how will the Uk tax foreign sources of income? If everything goes through either PAYE or is taxed at source by banks or brokerages that's fine, but many UK residents have non-UK source income so how is the tax on that captured?

jb82

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/331758/tiin-class2-nic.pdf

jb82

Class 2 isn't being abolished just the method of payment (changed to be collected via self assessment) There will remain the ability to pay as normal if you do not self assess.

nun

Nice information, but it totally ignores expats. I've emailed the contact person at the bottom of the note to ask for an explanation.

OCKF

Luckily I have my Accountant do that for me for a reasonable fee

nun

Yes reading the policy note it becomes clear that Class 2 NI isn't being abolished at all. It will be collected in a different way and will be voluntary for the self employed with profits below a certain threshold.....that's a time bomb waiting to happen.

LondonSquirrel

Said in today's paper that those who wish can still file by the hard copy method.

jb82

I'm an expat paying class 2 voluntarily and received a letter from hmrc stating my direct debit would continue and this change wouldn't change my situation. I imagine you'll get one too if you are in the same position.

nun

Maybe. I make the same payment, but get a bill from HMRC every year and send them a cheque. I haven't had a letter form HMRC yet.