Budget 2016: Abolition of Class 2 NICs

At present self-employed individuals pay two types of National Insurance Contributions (NIC): class 2 and class 4. Class 2 is £2.60 per week. Class 4 is 9% on profits between £8,060 and £42,385 and
2% on profits over £42,385.

The government has confirmed that from April 2018, Class 2 NICs will be abolished.

This is a welcome change that simplifies the NIC system and reduces the administrative burden on self-employed individuals.