Calculkating NI contributions

Enigmaman

I have obtained the following calculation on gov.uk in respect of Tax and NI deductions on presumed income of $400.40 per week.

https://www.tax.service.gov.uk/guidance/self-employed-ready-reckoner/outcome/calculation-result

One assumes it is correct as it is gov.uk, but I was wondering what was going on with NICs?

The result does not differentiate between Class 2 and Class 4...so I have two questions:

(1) is this calculation correct?

(2) Are pension contributions taken into account when calculating NICs?    

TadleyBaggie

That link will not work for anyone else, did you screenshot the page?

Ferro

Presumably you mean for 2023/24 as Class 2 wouldn’t be in any calculation from 6th April 2024?

https://www.gov.uk/self-employed-national-insurance-rates

chrisbur

Had a go and under the figures the following message appeared....
"If you’ve registered for Class 2 NICs, your contributions have been treated as paid.

If you’re not registered for Class 2 NICs you must register now. Find out how to register for Class 2 NIC (opens in a new tab)."

Ferro

On the income figures provided Class 2 is treated as paid. 

Enigmaman

TadleyBaggie said:

That link will not work for anyone else, did you screenshot the page?

Sure. Here goes:

Enigmaman

Ferro said:

Presumably you mean for 2023/24 as Class 2 wouldn’t be in any calculation from 6th April 2024?

https://www.gov.uk/self-employed-national-insurance-rates

It's for 2024-5 but thanks for the link on NI rates.

Ferro

Enigmaman said:

TadleyBaggie said:

That link will not work for anyone else, did you screenshot the page?

Sure. Here goes:

Correct. Annual profit 20820 less free of NI 12570 = £8250 chargeable at 6% - £495. 

As previously stated - Class 2 treated as paid.