Class 2 Nic

homerhotspur

My wife retired from teaching last year. She has 39 years Full contributions shown on her National Insurance record. She has been doing some home tutoring the last year and we have just completed her tax return but Class 2 NIC is a confusion. She is just over the lower threshold but it isn't at all clear whether she needs to pay or not. Given her age/ previous contributions does she still have to register and  pay this weekly amount?

Dazed_and_C0nfused

Having 39 years doesn't guarantee a full State Pension as she is under transitional rules.

What does her State Pension forecast actually say?  In full.

If her profits are high enough she will be liable to pay it irrespective of the benefit she may or may not get from doing so.

chrisbur

homerhotspur said:

 She is just over the lower threshold 

Are you sure that there is not some expense you overlooked when calculating the profit that might be enough to take it under the threshold?

homerhotspur

chrisbur said:

homerhotspur said:

 She is just over the lower threshold 

Are you sure that there is not some expense you overlooked when calculating the profit that might be enough to take it under the threshold?

No, because she just claims the flat rate trading allowance of £1,000

Pennywise

homerhotspur said:

chrisbur said:

homerhotspur said:

 She is just over the lower threshold 

Are you sure that there is not some expense you overlooked when calculating the profit that might be enough to take it under the threshold?

No, because she just claims the flat rate trading allowance of £1,000

Are you sure her total allowable expenses wouldn't be over £1,000?  It's not that hard to get over the £1,000 when you factor in the use of home as office allowance, mileage at 45p per mile, a proportion of telephone/broadband, business related subscriptions, etc.