Voluntary National Insurance for Self Employed Low Earner. Handholding needed please!

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81911897#Comment_81911897

When you complete yout self assessment tax return you need to give details of all your taxable income.,

That includes JsA, which is a taxable benefit.

if you had any employment, savings interest etc during the year , that also has to be included.

You select what pages you need to complete at the start of completeing the return.

uknick

Not quite the same for JSA as JSA gives a credit for Class 1 NI.

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81912349#Comment_81912349

JSA is not included on self employment pages so does not affect class2 calculation.

uknick

https://forums.moneysavingexpert.com/discussion/comment/81913824#Comment_81913824

Isn't that what I said?

Tunstallstoven

https://forums.moneysavingexpert.com/discussion/comment/81912209#Comment_81912209

I've been thinking about this again today… So just to be clear, I'll have to put employment earnings from the tax year on the SA form, even if they were processed through PAYE?

A more general question… Will the voluntary Class 2 NIC amount owed be the same regardless of whether I pay it as soon as I can, a week before the SA deadline, or in 5 years?

Many thanks

uknick

Yes and yes (the last yes is with the proviso you will pay the rate applicable for the tax year of each return).

The self assessment system is designed to capture all your taxable income for the year. From that it calculates how much income and NI is due on that amount. It then deducts how much tax already paid for the year and tells you how much tax is still owed to HMRC, or what they owe you.

Tunstallstoven

Thanks for you help and patience.

Much appreciated