Self employed national insurance contributions

sjwomersley

Hi There,

Following the Chancellor's spring statement from the start of the 2022 - 2023 tax year there will be no Class 2 National Insurance contributions due between the Primary Threshold and Lower Profits Limit.

Until now the self employed have had to pay Class 4 National Insurance contributions once their profits have passed the Lower Profits Limit. From the start of the '22  -'23 tax year the LPL is £11,908.

Does this mean that Class 2 NICs have now been abolished? Under the new rules it doesn't appear they will ever be due. My understanding is that once profits go above £11,908 I would have to pay Class 4 NICs but if they remain under that figure I don't pay any NICs at all

Thanks,

Sam

Jeremy535897

My understanding for class 2 NIC is as follows for 2022/23:
Profits 0 to 6725: no class 2 NIC, no added year for state pension unless voluntary class 2 NIC is paid
Profits 6726 to 11908: no class 2 NIC but year counts for state pension
Profits over 11908: class 2 NIC £3.15/week