Class 2 NI contributions to continue for Isle of Man self-employed

Self-employed people on the Isle of Man must continue paying National Insurance payments despite changes in the UK.

The Manx Treasury said while the UK plans to abolish Class 2 contributions from April, details were yet to be finalised for those on the island.

It means those liable must still make the payments for the 2024-25 year.

A Treasury spokesman said a decision had been taken to keep collecting the contributions for the "foreseeable future" on the island.

The scrapping of Class 2 contributions was one of a range of measures outlined in the UK Chancellor's autumn statement in November.

Those also included confirming an 8.5% rise in the state pension based on the triple lock principle and a 2% cut in the main rate of National Insurance (NI), taking it to 10% from January.

The Isle of Man main rate of NI currently stands at 11% and Manx Treasury Minister Alex Allinson has previously said the government had to be "really quite careful" about taking any steps that would cause a reduction in the National Insurance Fund.

A spokesman for the Treasury said details for future Class 2 contributions were yet to be finalised for those living on the island and therefore a decision had "been taken by the Treasury to continue collecting Class 2 NI for the foreseeable future and avoid any uncertainty".

"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," he added.

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