While the United Kingdom Government announced plans late last year to abolish Class 2 National Insurance (NI), details have yet to be finalised for those living in the Isle of Man.
A decision has therefore been taken by the Treasury to continue collecting Class 2 NI for the foreseeable future and avoid any uncertainty.
People who pay Class 2 National Insurance contributions are reminded that they should continue to pay for the forthcoming tax year, April 6, 2024 to April 5, 2025.
NI payments
People who pay NI this way, usually self-employed individuals, should therefore ensure their direct debit arrangements remain in place at the turn of the financial year.
For further information on National Insurance, contact the Income Tax team by calling 685400 (option 4 then option 3) or email nationalinsurance.itd@gov.im
Treasury
Treasury Minister Dr Alex Allinson MHK supplied Tynwald Members with the following update at the December 2023 sitting:
“Members will be aware that in the UK Autumn statement the Chancellor announced that the payment of Class 2 NI would be abolished for most self-employed individuals from April 2024.
“The UK have yet to publish full details of how a self-employed person will continue to access the current suite of NI funded benefits that they currently do.
“Due to this uncertainty I do not feel that it is appropriate to follow the UK when significant details have still yet to be published, and therefore I can confirm that the current Class 2 payment process will continue for 24/25 tax year and the proposal to move the collection of Class 2 NI into the Income Tax assessment will not now go ahead.
Treasury Minister Dr Alex Allinson MHK
“Once Treasury fully understand the impact of the changes announced by the UK a decision will be made as to how we will proceed in the Island.”
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