SA return says £0 to pay but am sure I'm over NI2 threshold??

middlingditch

Jeremy535897 said:

Dazed_and_C0nfused said:

A better first step might be to check your State Pension forecast on gov.uk so you have an understanding of exactly where you stand before rushing into anything.

You can check your NI history at the same time.

When looking at your State Pension forecast it is important you read past the likely headline of £175.20.  

You are under transitional rules so 35 years of NI isn't what matters.

I would agree, but you also have to remember that OP is not talking about voluntary class 2 NIC here, but compulsory class 2 NIC, so the pension forecast is a bit of a red herring.

I think the problem arose when class 2 NIC ceased to be collected by direct debit and was transferred to self assessment. Not everybody was automatically made liable for class 2 under self assessment. Since then, people have registered for self assessment without going through the process of registering for self employment, which has exacerbated the problem.

Yes - I'm not worried about the voluntary contributions for now, but compulsory ones which I can find no way of paying, with the deadline looming. 

I guess my worry is that I'll be fined or otherwise penalised for not paying on time if I don't sort it by 31 Jan, even though my tax return says "nothing to pay" and I raised a query with them about the issue in November. And I'm also worried that I could be penalised for not filling in this form that I had no idea I had to fill in five years ago... So I suppose my question is "should I be worried?"! 

I can see the benefits of having an accountant, but my earnings are really too small to make that worthwhile.

middlingditch

Oh and I note that on that very useful page Jeremy posted, it says
"There is also a tool within the online Self Assessment service which allows you to update your period of self-employment and correct your Class 2 calculation prior to submitting a return." 

Can anyone point me to this tool? I feel I've scoured the service and can't find anything.

[Deleted User]

There is no ‘fine’ for late payment. There is a 5% surcharge on any balance for 2019/20 not paid by 28th February and ongoing interest at about 4% per annum. 

sheramber

Have you been charged NIC in previous years?

[Deleted User]

sheramber said:

Have you been charged NIC in previous years?

See opening post.

Jeremy535897

middlingditch said:

Oh and I note that on that very useful page Jeremy posted, it says
"There is also a tool within the online Self Assessment service which allows you to update your period of self-employment and correct your Class 2 calculation prior to submitting a return." 

Can anyone point me to this tool? I feel I've scoured the service and can't find anything.

It's not something I have managed to track down. I suggest you call the helpline:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/national-insurance-enquiries-for-employees-and-individuals

middlingditch

Thanks Jeremy and all repliers. You've been helpful and kind. 

I think I will inevitably have to phone the helpline. I was hoping to avoid that, especially in this super-busy time, but if they won't respond to my mailed letter, I have no choice. At least I have some clue now about what might be going wrong. Thanks again.

[Deleted User]

middlingditch said:

Thanks Jeremy and all repliers. You've been helpful and kind. 

I think I will inevitably have to phone the helpline. I was hoping to avoid that, especially in this super-busy time, but if they won't respond to my mailed letter, I have no choice. At least I have some clue now about what might be going wrong. Thanks again.

Phone at 8am sharp - best time!

middlingditch

Just to finish this off: I phoned this morning (11am-ish), only on hold 5 mins or so, then spoke to a brilliant woman who knew exactly what I was stuttering about, and she got everything sorted both retrospectively and for the future. Even talked me through my pension forecast and how it all works, without me asking.

The problem was as predicted here - I wasn't fully registered as self-employed with the NI people, for some reason - but she's sorted me out now. 

Thanks again for your help, I was losing sleep!

[Deleted User]

middlingditch said:

Just to finish this off: I phoned this morning (11am-ish), only on hold 5 mins or so, then spoke to a brilliant woman who knew exactly what I was stuttering about, and she got everything sorted both retrospectively and for the future. Even talked me through my pension forecast and how it all works, without me asking.

The problem was as predicted here - I wasn't fully registered as self-employed with the NI people, for some reason - but she's sorted me out now. 

Thanks again for your help, I was losing sleep!

Great - always good to here outcomes.