Self employed - class 2 and class 4 NI?

kipperman

Hello

I was self employed between 1996 and 2005 and I know that I paid class 4 NIC then ( which doesn't contribute to state pension). However, just doing a bit of research suggests that you have to also pay class 2 NIC as well, and only additional class 4 beyond a certain level. So the question is ( and I can't remember for the life of me if I did) would I have automatically had to pay class 2 in addition to the class 4? 

I can't access tax returns on HMRC this old - just wondering if I have paid class 2 over these years but they are not showing on the check your contributions web site

Thanks

MikeFl

If you were paying Class 2 then it would show on your self-assessment tax calculation. If you still have copies you could check them. The other way is on the HMRC website check your NI contributions and see if they are 'full' for those years (as you say, only Class 2 contribute towards state pension; Class 4 is just straight in the Chancellor's pocket). If not, then I think you can pay them retrospectively, although HMRC might baulk and say you should have paid them at the time.

I was self-employed from 2013, and when I filled in the SA form, it automatically calculated my Class 4 NICs, but the Class 2's were missing until I phoned HMRC and asked them to be added (I'd missed them the first 2 years, they huffed a bit, but said I could pay them late). It seems that saying you're self-employed and filling in an SA to that effect doesn't automatically add the Class 2 requirement. You need to inform HMRC separately. Seems bizarre, but that's what I had to do. 

So check in the State Pension / NI contributions part of your account, and it will show if you did pay Class 2s for those years. It goes back all the way to your start of employment, not limited to 6 years.

Beddie

I remember in the 2000s paying class 2 and it was done separately to the tax return - I paid by direct debit. You had to register for it yourself, it was not automatic.

Then at some point a few years back, it got rolled into the tax return, so was included in the calculation when you completed it online.

So, if you missed paying them it might not be possible to do anything about it now, except pay to cover any gaps if needed.

kipperman

Thanks both. I suspect therefore that since this was way back and seemingly not automatic then I didn't pay. Just worth the long shot that perhaps I had, and for some reason it was not showing up on the NI contributions on your account. Makes sense that it became automatic, but long after I was self employed.