Class 2 national insurance will no longer be automatic. From 2015-2016 onwards the self-employed will report their liability through their self assessment. Those that report a profit below a new Small Profits Threshold(SPT) will not be liable for class 2 NICs, but they will be given the option to pay it voluntarily to protect their entitlement to contributory benefits. They will also be informed of the potential impact of choosing not to pay voluntary NIC. The SPT will be set equivalent to the class 2 Small Earnings Exception (this is currently set at £5885).
