Ubderstanding class 4 nic contribution

John_Pierpoint

CLAPTON wrote: »

NI is of course just another tax in the sense that the money is not ring fenced for specific purposes.
However payment of NI does influence one benefits... need thirty years payment for full state pension; second state pension depends upon amount of NI paid; entitlement to earning related JSA etc etc.

you need to look up the benefits systems to understand the linkage.

"John aged 62 set up a building business aged 16 and paid class 2 & 4 until he went bankrupt as a result of the current recession".
He is now a kept man as his wife is yet to retire from her job as a class room assistant.

What is John likely to get for his working life time of payments, when compared with an employee who has just been made redundant ?

Eventually a basic state pension?

leveller2911

John_Pierpoint wrote: »

"John aged 62 set up a building business aged 16 and paid class 2 & 4 until he went bankrupt as a result of the current recession".
He is now a kept man as his wife is yet to retire from her job as a class room assistant.

What is John likely to get for his working life time of payments, when compared with an employee who has just been made redundant ?

Eventually a basic state pension?

Fair question, as I see it the Government of the day reduced class 2 NI contributions and in doing so reduced the benefits the self employed would receive.At the same time they increased class 4 NI for which the self employed receive no benefit whatsoever and in doing so basically washed their hands from having any obligation to the million or more self employed in the country.