Measure
From 6 April 2022, self-employed individuals with profits between the small profits threshold and the lower profits limit will not pay Class 2 National Insurance Contributions (NICs); however they will continue to build up National Insurance credits.
The measure will affect self-employed individuals with profits between the small profits threshold and the lower profits limit. Over the 2022/23 fiscal year, the lower profits limit of £11,908 (the threshold below which self-employed individuals will not pay NICs) is equivalent to an annualised threshold of £9,880 from April to June 2022, and £12,570 from July 2022 onwards.
The measure will have effect from 6 April 2022.
Self-employed individuals who are low earners with profits between the small profits threshold and the lower profits limit will welcome this measure, which will also align the threshold from which both employed and self-employed individuals will start to pay NICs.