23-24 self assessment

[Deleted User]

drumtochty said:

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.

All correct - but the op was concerned about ‘having to’ pay class 2. Compulsory NI abolished from 6th April. 

Bookworm105

[Deleted User] said:

drumtochty said:

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. T

Indeed you can, but that is not the answer to the question asked.

Issybel0503

[Deleted User] said:

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. 

Yes, thank you I realise I will continue to pay class 4's as my income is and hope to be more than personal allowance, it was just me getting confused, thinking it meant class 2 abolished for 23/24.  # confused 😅