Class 2 NICs as a company director

monkey-fingers

I started up a Ltd company this year and because I have already previously breached my £12,570 tax allowance, I'm not paying myself a wage.

Normally, under these circumstances, people would pay Class 2 NICs to ensure pension contribution. Except that I don't need to as my pension is already full (Although I'm in my mid 50s, I've not missed a year since I was 18).

Other than trying to read the crystal ball and seeing them extend to 40 years or something, is there any point in paying Class 2 NICs?

Grumpy_chap

monkey-fingers said:

I started up a Ltd company this year and because I have already previously breached my £12,570 tax allowance, I'm not paying myself a wage.

Normally, under these circumstances, people would pay Class 2 NICs to ensure pension contribution. Except that I don't need to as my pension is already full (Although I'm in my mid 50s, I've not missed a year since I was 18).

Other than trying to read the crystal ball and seeing them extend to 40 years or something, is there any point in paying Class 2 NICs?

I am not sure that is correct.

AIUI, Class 2 NICs are only for self employed (sole trader).

Having started a Ltd Co., of which you are sole Shareholder and sole Director, you are now an employee of that Ltd Co.  The £12.5k that is drawn as salary is subject to employer NI, employee NI and income tax in the normal manner.

NorthYorkie

I think you must be referring to Class 3 NIC, i.e. voluntary contributions