question about Voluntary NIC Class 4. Do we have this Right?

tooafraid2ask

My wife used to be employed full time, now she works part time and earned around £5,000 for the next tax return. So far she has about 20 years of contributions to her state pension. We understand that by earning £5,000 a year she can voluntarily contribute £17.45 a week to her state pension (around £907 a year). Do we have this right?

molerat

She does not need to earn anything to make voluntary contributions, everyone has the right to make class 3 contributions.  Why is she making a tax return ? Not usually necessary for an employed person.

There is no such thing as voluntary class 4, class 4 is the compulsory class for the self employed earning over £12570.

xylophone

Has she obtained a state pension forecast?

https://www.gov.uk/check-state-pension

Is she able to increase her earnings to the Lower Earnings Limit?

https://www.litrg.org.uk/tax-guides/employment/what-national-insurance-do-i-pay-employee

tooafraid2ask

xylophone said:

Has she obtained a state pension forecast?
 

Is she able to increase her earnings to the Lower Earnings Limit?

 

Hi, Yes she have a pension forecast.  She is Self Employed  Now, this makes any diference?  

cobson

If she is self employed earning £5000 a year I think she should be able to pay Class 2 NICs at £3.45 per week.