Class 2 National Insurance Payments

Self-employed people need to be aware of forthcoming changes to payments of Class 2 NIC. From April 2011, payments for your Class 2 National Insurance contributions will become due on 31 January and 31 July, the same as a Self Assessment tax bill.

If you currently pay quarterly the change will mean you will receive just two payment requests from HM Revenue & Customs (HMRC) in the year (instead of four bills), in October and April, showing payments due by 31 January and 31 July respectively. You do not need to wait until the due date to make payment.

If you pay monthly by direct debit, your payments will stop temporarily, then resume with the payment for April 2011 being taken in August 2011, and monthly thereafter.  There will be an option to pay 6 monthly (January and July),for those who do not want to spread their payments.

Changes to childcare costs

HM Revenue and Customs has issued a reminder to tax credits claimants, that they must let HM Revenue & Customs (HMRC) know within one month of their childcare costs falling or ending. Deliberately failing to let HMRC know when renewing a claim could constitute criminal fraud and result in prosecution.

HMRC will be using credit reference agencies and data matching to spot patterns of fraud. They are also employing more investigators and will investigate each claim in high-fraud areas.