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?

[Deleted User]

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)."

[Deleted User]

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

[Deleted User] 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.

[Deleted User]

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.