23-24 self assessment

Issybel0503

I've started my tax return, and it appears I still have to pay  class 2 nic which I thought had been scrapped ? 
I've been SE since 2009  always paid class 2 to secure my pension. 
I have 40 years on my NI . 
Any advice please ? 

[Deleted User]

Scrapped from 6th April 2024. 

It wouldn’t matter if you had 50 years of contributions- you still pay until you reach state pension age. 

Willbob6

I have filed all my tax returns for the past 10 years and paid  all my NI contributions for some reason it says not contributed enough when I go on the Hmrc app and on to the NI section , can anyone advise ? 

Dazed_and_C0nfused

Willbob6 said:

I have filed all my tax returns for the past 10 years and paid  all my NI contributions for some reason it says not contributed enough when I go on the Hmrc app and on to the NI section , can anyone advise ? 

Not with that limited information no.

Do you mean not enough for individual years?

Or you don't get the standard new State Pension?

Willbob6

Dazed_and_C0nfused said:

Willbob6 said:

I have filed all my tax returns for the past 10 years and paid  all my NI contributions for some reason it says not contributed enough when I go on the Hmrc app and on to the NI section , can anyone advise ? 

Not with that limited information no.

Do you mean not enough for individual years?

Or you don't get the standard new State Pension?

Basically when I go in to the national insurance section on the Hmrc app to check years contributed it shows “year is not full “ for the past ten years although I have paid all my NI within each tax return 

redpete

Willbob6 said:

Dazed_and_C0nfused said:

Willbob6 said:

I have filed all my tax returns for the past 10 years and paid  all my NI contributions for some reason it says not contributed enough when I go on the Hmrc app and on to the NI section , can anyone advise ? 

Not with that limited information no.

Do you mean not enough for individual years?

Or you don't get the standard new State Pension?

Basically when I go in to the national insurance section on the Hmrc app to check years contributed it shows “year is not full “ for the past ten years although I have paid all my NI within each tax return 

Maybe you did pay the amount of NI based on what you had earned through the year, but this might not have been enough to count as a full year towards building up your contribution record.

Bookworm105

Willbob6 said:

Dazed_and_C0nfused said:

Willbob6 said:

I have filed all my tax returns for the past 10 years and paid  all my NI contributions for some reason it says not contributed enough when I go on the Hmrc app and on to the NI section , can anyone advise ? 

Not with that limited information no.

Do you mean not enough for individual years?

Or you don't get the standard new State Pension?

Basically when I go in to the national insurance section on the Hmrc app to check years contributed it shows “year is not full “ for the past ten years although I have paid all my NI within each tax return 

if you were an employee that "year is not full" means you did not pay enough NI to meet the threshold for "earning" a full year. The only way to rectify that now is by making a Class 3 voluntary contribution. Your NI record will tell you which years are still open and how much you need to pay each year to do that.

Alternatively, if you were self employed and had zero employee income, then please explain what you mean by "paid all NI" . If you actually paid HI as self employed then you either did so voluntarily or because your profits were above the threshold requiring you to pay Class 2 and Class 4. In the latter case you cannot have a shortfall on the year since it is Class 2 that gives you the full year record.

Issybel0503

[Deleted User] said:

Scrapped from 6th April 2024. 

It wouldn’t matter if you had 50 years of contributions- you still pay until you reach state pension age. 

I've got 40 years contributions,  it says I can't improve it, so from next tax year, I will not have to pay class 2 nic I'll have 4 years until I retire. 

[Deleted User]

Issybel0503 said:

[Deleted User] said:

Scrapped from 6th April 2024. 

It wouldn’t matter if you had 50 years of contributions- you still pay until you reach state pension age. 

I've got 40 years contributions,  it says I can't improve it, so from next tax year, I will not have to pay class 2 nic I'll have 4 years until I retire. 

The point that I was making is that you will continue to pay NIC. Class 1 if you are employed or, in your case, class 4, regardless of how many years contributions that you have. It is worse for the self-employed in that contributions are required for the full tax year in which you reach state pension age e.g. receive state pension today - pay class 4 on all 2024/25 profits. 

Bookworm105

Issybel0503 said:

[Deleted User] said:

Scrapped from 6th April 2024. 

It wouldn’t matter if you had 50 years of contributions- you still pay until you reach state pension age. 

I've got 40 years contributions,  it says I can't improve it, so from next tax year, I will not have to pay class 2 nic I'll have 4 years until I retire. 

as above, correct that Class 2 is abolished for 24/25 onwards, but you will still be required to pay class 4 if your profits are above the threshold and for which you get no benefit from paying it. 

same as an employee, they must pay NI until they reach state pension age if their earnings are above the class 1 threshold, so can commonly end up having paid more than the 35 years required for the state pension (under current rules!). 

drumtochty

as above, correct that Class 2 is abolished for 24/25 onwards.

This is not the case, if your profits from self-employment are below £6,725 in the 2024 / 2025 tax year, you would not earn a national insurance credit for your state pension in that year as you would not pay any Class 4 NI contribution. You can still pay a voluntary Class 2 NI contribution in 2024 / 2025 tax year to receive a national insurance credit for your state pension in 2024 / 2025 year. This is done by adding the self-employed page to your self-assessment tax return and advising you want to pay a voluntary Class 2 NI contribution.

 

The Chancellor’s statement was less than clear and a lot of the press reports were incorrect. The national insurance rates produced by the government list a payment of £3.45 per week for Class 2 national insurance for 2024 / 2025 in these circumstances.