Class 2 NIC self employed

Rtj123

I'm completing my self assessment for 23-24. I work as a sole trader part time. My total income for the year was £14320 and my expenses were £240 

So my total taxable income is £14080

I always pay class 2 NIC contributions for my state pension. This time, it is saying my tax bill is around £440 (can’t remember exact amount off the top of my head) and my class 2 NIC contributions is £0. I have tried to click to voluntarily pay the class 2 but it won’t let me. It says you do not have to pay class 2 NIC if profits are between £6750 and £12750?? Is this why I’m being told I don’t have to pay?
Any help would be much appreciated.

SacredStephan

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-employed

Edit: Sorry I didn't read the first post properly, pls ignore the text above the link

Rtj123

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

Dazed_and_C0nfused

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

You are both dealing with different tax years.

Also, is there any reason you haven't claimed the trading allowance instead of actual expenses?

[Deleted User]

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

Rtj123

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Dazed_and_C0nfused

Rtj123 said:

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Without the full details of the calculation it's difficult to understand what's happened.

Were you Scottish resident in 2023-24?

Rtj123

Dazed_and_C0nfused said:

Rtj123 said:

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Without the full details of the calculation it's difficult to understand what's happened.

Were you Scottish resident in 2023-24?

No not a Scottish resident. The final calculation shows I’m paying income tax and class 4 national insurance but the class 2 national insurance is showing as £0. Given my profits are over £12570, should I not be paying the class 2 national insurance for the 2023 - 2024 tax year?

I know the rules have changed since 6th April 2024 meaning if your profits are over £12570 you do not pay any class 2 national insurance, but this doesn’t count for me as I’m doing my 2023 - 2024 tax return? Or does it count because I am doing my tax return after 6th April 2024??

That’s the bit that confusing me, whether or this change affects my 23-24 return.

[Deleted User]

Dazed_and_C0nfused said:

Rtj123 said:

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Without the full details of the calculation it's difficult to understand what's happened.

Were you Scottish resident in 2023-24?

The tax and class 4 NIC due on £14093 is exactly £441.67. 

Can’t think of an explanation.

Rtj123

[Deleted User] said:

Dazed_and_C0nfused said:

Rtj123 said:

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Without the full details of the calculation it's difficult to understand what's happened.

Were you Scottish resident in 2023-24?

The tax and class 4 NIC due on £14093 is exactly £441.67. 

Can’t think of an explanation.

That’s correct but shouldn’t I be paying class 2 NIC also?

Dazed_and_C0nfused

[Deleted User] said:

Dazed_and_C0nfused said:

Rtj123 said:

[Deleted User] said:

Rtj123 said:

SacredStephan said:

LITRG says:
From 6 April 2024, self-employed taxpayers no longer need to pay class 2 NIC. However, in certain circumstances you may wish to pay class 2 NIC voluntarily (see the heading below).

https://www.litrg.org.uk/working/self-employment/nic-self-

Thanks. Going from that, I should be paying as I’m above the threshold of £12750? As my total income is £14080. Confused why it is saying I don’t have to pay any or am I reading it wrong?

No - SacredStephan mentioned ‘from 6th April 2024’ which is not relevant as the return relates to 2023/24. 

Can you provide a breakdown of the calculation? You are sure class 2 is not included?

My total income is £14326
my expenses are £233
So, total taxable profit = £14093

It then says, ‘total amount due for 2023 - 2024 = £441.67
and
 HM Revenue and Customs will allocate your payments against any Class 2 National Insurance first unless you have outstanding debts.

Without the full details of the calculation it's difficult to understand what's happened.

Were you Scottish resident in 2023-24?

The tax and class 4 NIC due on £14093 is exactly £441.67. 

Can’t think of an explanation.

Thanks, I had completely overlooked the Class 4 aspect 😭