Tax return question for 24-25

Rtj123

I’m just submitting my tax return for the 24-25 year.
I've noticed this year because my profit is less than £12750 but more than £6845, I do not need to pay any national insurance. Is this correct? I normally pay both class 2 and class 4. My profits are down this tax year so I don’t need to pay class 4? 

Also, it asks of I’ve received any interest from bank accounts. The only interest I have received are for my cash isa. I’m under the impression this does not need putting down as it is tax free?

any guidance appreciated. Thanks.

uknick

Interest from ISAs is not included in your tax return.

Regarding national insurance, I'm surprised you're not being asked to pay Class 2 as the threshold is £6,725 for 2024-25.  But, if the HMRC online assessment says none to pay, then so be it.  Of course you can pay Class 2 voluntarily if you wish to.

Rtj123

uknick said:

Interest from ISAs is not included in your tax return.

Regarding national insurance, I'm surprised you're not being asked to pay Class 2 as the threshold is £6,725 for 2024-25.  But, if the HMRC online assessment says none to pay, then so be it.  Of course you can pay Class 2 voluntarily if you wish to.

I think the £6725 is if you are under that figure you don’t pay but have the option to voluntarily pay. If you are over the £6725 I’m now led to believe the government  credit your class 2 for your state pension contribution. So in effect you are getting a full years class 2 NI but not paying for it. I’m sure someone may know better though!

uknick

You're right.  I forgot that the rule change came in last year allowing you to get a free Class 2 contribution if you're between £6,725 and the £12,570 threshold for Class 4.

I should have remembered because my trading profit was below £6,725 and I had to pay the contribution.  I can't get my head round how you can make more profit and pay less NI.