Tel: 01403 780 770

Building and protecting your wealth

TAX TIP TUESDAY: No more Class 2 NI from 2018. But it may cost you more

Want to save tax this year? Read this week’s short Tax Tip, tailored for UK doctors and dentists to help you save money and get more organised with your tax affairs. Take 5 minutes to have a read.

This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice. 

No more Class 2 NI from 2018

From 6 April 2018, self employed workers will no longer need to pay Class 2 National Insurance contributions (NICs).

On the surface it may seem like a bonus, however it could end up costing an additional £592.80 per year. This is if your profits are under the threshold for class 4 NICs, or you have an exemption.

How NICs works now

NICs are currently paid at £148.20 per year. This is voluntary if your profits are under £6,025, however most people choose to keep their NICs topped up, as you now need at least 35 years worth of NICs to be entitled to take the full state pension.

The changes

From next year, class 4 NICs will be restructured, for any self-employed worker earning between £5,876 and £8,164 profits. It will be deemed that you have paid this NIC but without incurring an actual payment.

For low earners though, where profits are below this level, the only way to maintain the contribution required for the state pension will be to pay Class 3 NIC, which is currently £741 per year. This equates to an increase between class 2 now and class 3 next year of almost £600.

Other rules apply so if you are self-employed it is best to work with a specialist accountant for doctors and dentists that can keep you updated with how the new regulations will affect you.

Follow us on for regular financial and mortgage updates

Twitter                     LinkedIn

If you found this article interesting, why not share it?

Meet the Advisers

With over 20 years experience our advisors can help you meet your business and personal goals.

Who we Help

All our clients are doctors and dentists, just like you. As specialists we know your industry inside out.

Info & News

Make this the place you visit to keep up to speed with financial news for your sector.

Contact Us

Wherever you are in the UK we can help you build and protect your wealth.

Get Connected

to our specialist team

Tel: 01403 780 770

Keep Updated

Simply register your name and email below and receive our updates direct to your inbox

Dental & Medical Financial Services News Updates

Just for doctors and dentists

Read more news


Dental and Medical Financial Services is an appointed representative of Best Practice IFA Group Limited, which is authorised and regulated by the Financial Conduct Authority. Company registered in England no. 9158580 Registered office: 1 Market Square, Horsham, West Sussex, RH12 1EU

© 2014 Dental & medical Financial Services. All rights reserved. Website design by Goldmine Media.