Self Employed - Should I Pay this year's Class 2 NICs voluntarily following low profit?

metalfury

Hi all,

I've had a low profit year and have the option on my self-assessment to not pay Class 2 NIC.

I'm 48 and according to https://www.tax.service.gov.uk/ I need to contribute another 7 years before 5 April 2042 to get the full £203.85.

I expect to be working for far more than another 7 years (probably double that), so am I right in thinking that it would be fine skipping this year's payment?

I can afford to voluntarily pay it, but if I'm going to be paying it until I retire, is it worth skipping a year when the opportunity arrives.

Seems like the right approach (assuming I stay fit and healthy), but I'm worried that there might be something I've missed!

Thanks in advance

QrizB

metalfury said:

I'm 48 and according to https://www.tax.service.gov.uk/ I need to contribute another 7 years before 5 April 2042 to get the full £203.85.
I expect to be working for far more than another 7 years (probably double that), so am I right in thinking that it would be fine skipping this year's payment?

Yes, if you're confident of having to pay another 7 years Class 2 contributions before you reach SPA, I don't see any compelling reason to voluntarily pay for 2022-23.

metalfury

QrizB said:

Yes, if you're confident of having to pay another 7 years Class 2 contributions before you reach SPA, I don't see any compelling reason to voluntarily pay for 2022-23.

Thanks so much QrizB :-)