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Are voluntary Class 3 NI contributions taxable?
richard6868
Posts: 11 Forumite
I cannot find the answer to the question below on the HMRC website.
Following my retirement at the end of 2014 at age 60 and since the new state pension arrangements came into force in 2016, I have been paying voluntary Class 3 NI contributions with a view to increasing my state pension which becomes payable in 2020.
I do not fill in a tax return. Looking at my annual tax statement for 2017-18 from HMRC, I am not seeing any reference to my NI contributions.
Am I right in thinking that, if I were in employment, I would pay no tax on my NI employee's contributions i.e. the NI contribution and my occupational pension contributions would be deducted from my gross salary before tax was calculated?
If so, does the same not apply to my current occupational pension income? Should the NI contributions not be being deducted from my occupational pension payments before tax is calculated?
Following my retirement at the end of 2014 at age 60 and since the new state pension arrangements came into force in 2016, I have been paying voluntary Class 3 NI contributions with a view to increasing my state pension which becomes payable in 2020.
I do not fill in a tax return. Looking at my annual tax statement for 2017-18 from HMRC, I am not seeing any reference to my NI contributions.
Am I right in thinking that, if I were in employment, I would pay no tax on my NI employee's contributions i.e. the NI contribution and my occupational pension contributions would be deducted from my gross salary before tax was calculated?
If so, does the same not apply to my current occupational pension income? Should the NI contributions not be being deducted from my occupational pension payments before tax is calculated?
0
Comments
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You do pay tax on employed NI contributions. Voluntary contributions are not tax deductible.0
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