Do you want to pay Class 2 NICs voluntarily? Self assessment question

Krakkkers

Filling out my self assessment form for the first time ever due to ebay sales and amd being asked "Do you want to pay Class 2 NICs voluntarily?" and its says it will be £91.
What would this do for me?
I am 60 and retired, taking 2 works pensions and am 1 year short of the max pension at £226 out of £230 max

FrugaiMacDugal

They may help to make up your 1 year shortage of max pension.

Secret2ndAccount

It is likely that paying the £91 will increase your pension to the max. So £4 or £5 extra per week (thank you SVaz) from age 67. Payback is very quick, so worth doing, but...
You only need 1 yr of NI between now and age 67.
You can say no, then decide to make the payment in 4 years time.
If you have a year when your profit is more than £6845 you will be credited with a full year for free.
If you have a year when your profit is more than £12,570 you will have no choice but to pay.
Even if next year's profits are a bit higher, the voluntary contribution will be lower than this yr.
You can be credited with an NI year for providing child care for grandchildren.
So no compulsion to pay right now

SVaz

It’s £4 a Week more, not a year.  

So it would take less than 6 months to recoup that £91.  In another 7 years it will be more than £4 a week too. 

It’s a no brainer. 

Secret2ndAccount

You are absolutely right and I will edit my post. Thank you

molerat

Class 2 of £91 only covers around 26 weeks so will not give a full year, what were you doing for the other part of the year ?  You need to figure out what you will be doing for each year up to state retirement date and if anything will cover that needed year.   That £91 could be either excellent value for money or a generous, but worthless, donation to the taxman.

Krakkkers

Is half a year extra not worth £91? I am 1 year short of my max

molerat

Half a year is worthless so you would need to top that year up so what were you doing for the remainder of that year ?  And what will you be doing in future ?  Half a year at class 2 for £91 plus topping up the remainder with class 3 for £454 is not as good as paying a whole future class 2 year at £180.

Krakkkers

I was retired and receiving 2 pensions, i have only just had the need to fill out a self assessment because of the ebay side hustle tax.

QrizB

Krakkkers said:

I was retired and receiving 2 pensions, i have only just had the need to fill out a self assessment because of the ebay side hustle tax.

When did you tell HMRC you began self-employment? Was it at the start of the 24/25 tax year (or earlier) it partway through it?

Do you expect to continue in self-employment throughout the 25/36 tax year?

Rather than paying £91 for half of 24/25, it would make more sense to pay £180-ish for all of 25/26.

Krakkkers

I got my UTR in December last year and was asked to fill out a self assessment for 24/25 which i have done but not yet sent as i still have a few questions including this one about NIC.
Yes i intend to continue with my ebay activity and step it up a bit as it can no longer be a hobby (which it was) i have to take it a bit more serious now and understand what i can claim for as i never really thought about it before.
Looks like i should wait till next year then to pay this class 2 NIC. Just out of interest, is a half year no use?
Thanks for all the advice, i really need it.