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Class 2 & Class 4 NIC Contributions?
Bucko
Posts: 10 Forumite
in Cutting tax
Hi all,
I was self-employed for part of the 2020-21 tax year (and unemployed otherwise). I recently submitted my self assessment for 2020-21 and was able to pay it in full with payments on account held from my self assessment payments from the tax year 2019-20. I have just been told that this means I have only made class 4 NIC contributions for the tax year 2020-21. Is anyone able to advise whether this is correct?
Many Thanks
I was self-employed for part of the 2020-21 tax year (and unemployed otherwise). I recently submitted my self assessment for 2020-21 and was able to pay it in full with payments on account held from my self assessment payments from the tax year 2019-20. I have just been told that this means I have only made class 4 NIC contributions for the tax year 2020-21. Is anyone able to advise whether this is correct?
Many Thanks
0
Comments
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Could it be because your profits for 2020/21 were above the Class 4 NIC limit of 9500 but below the tax personal allowance of 12500?1
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My profits for 2020/21 were significantly above the tax personal allowance of 12500.0
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You would need to elaborate on what you were told - seems inexplicable to me.Bucko said:My profits for 2020/21 were significantly above the tax personal allowance of 12500.1 -
I was only told that I had made class 4 NIC contributions only.[Deleted User] said:
You would need to elaborate on what you were told - seems inexplicable to me.Bucko said:My profits for 2020/21 were significantly above the tax personal allowance of 12500.
My (admittedly limited) understanding of the NIC classes is that it shouldn't be possible to need to pay class 4 NIC without first having paid class 2 NIC? My NIC record is showing as fully paid for 2020/21.0 -
If you are self employed in 2020/21 with profits of more than £9500 you would be liable to pay both class 2 and class 4.
Class 2 is at a fixed rate of £3.05 per week. Class 4 is paid at 9% on profits on excess of £9500.0 -
Unless you haven't registered as self employed with the National Insurance part of HMRC.
Lots of threads about this on Accounting Web1 -
Thanks for the info. Could you please provide a link as I'm not entirely sure what I'm looking for?!Dazed_and_C0nfused said:Unless you haven't registered as self employed with the National Insurance part of HMRC.
Lots of threads about this on Accounting Web0 -
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Thanks, very informative. Will it be possible to rectify this retrospectively?Dazed_and_C0nfused said:0
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