Do you want to pay Class 2 NICs voluntarily? (Self Assessment confusion)

SpikeyKitten

Morning everyone.

Just completing my self assessment online for '24/'25. I'm a bit confused by the following page regarding Class 2 NICs. It seems to give contradictory instructions on the same page.

It says:

"Your self-employment record shows you owe:

Class 2 NICs amount: £ 179.40."

It then goes on to say:

"The amount shown is the amount HMRC believes is due based on your National Insurance record.

However, if your taxable profits were £6,725 or more, you will not need to pay Class 2 NICs, your contributions are treated as having been paid to protect your entitlement to State Pension and certain benefits.

If your taxable profits are less than £6,725 or you made a loss, you can choose to pay Class 2 NICs voluntarily to protect your entitlement to State Pension and certain benefits."

So as my profits are above £6,725 that means I don't have to pay right? But then why show the amount I owe? I'm confused. Obviously, I don't want to pay it if I don't have to. But likewise, I don't want to retire and then be told that I'm not entitled to a pension because I didn't pay £179.40 in 2025...

molerat

You don't have to pay if your profits are above the SPT.  Until you have completed the SA HMRC don't know that though so tell you all the options.

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