Summary and Background Simplifying NICs paid by the self-employed
12.At Budget 2014 the Government announced that the collection of Class 2 NICs would be moved into self-assessment (SA) so that the self-employed could deal with their Class 2 NICs together with their income tax and Class 4 NICs. This followed a 2012 recommendation by the Office of Tax Simplification and a consultation published in July 2013 entitled Simplifying the National Insurance Processes for the Self-Employed, which sought views on proposals to simplify Class 2 NICs.
13.This simplification will:
	change the way in which Class 2 NICs are structured;
	change the means by which Class 2 NICs are collected; and
	change the means by which Class 2 NICs are enforced with changes to associated appeal rights.
14.An overview of the way NICs currently works for the self-employed is contained in Annex A to these Explanatory Notes, together with a summary of the changes being made.