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Posted Mon, 24 Jun 2024 15:32:03 GMT by Ivan Horn
Voluntary NICs and qualifying years for state pension I'm self employed and in the 2023-24 tax year I had an unusually low income (just over £11,000 from work and savings interest). This meant that I was not due to pay tax or NI for that year and as I understand it, this means that 2023-24 will not be a qualifying year for the state pension. I've read that paying voluntary Class 2 NICs would allow it to be a qualifying year, but I'm unsure that is the case or if other payments would be required, and if it is, how much voluntary Class 2 NICs I would need to pay to achieve that. Thanks in advance for any information clarifying this for me. Ivan
Posted Fri, 28 Jun 2024 12:40:00 GMT by HMRC Admin 20 Response
Hi,
If your self-employment earnings were in-between the Small Profits Threshold of £6,725 pa and Lower Profits threshold of £12,570 you should have your National Insurance covered for every week you were registered Self Employed and shouldn’t have to pay voluntary.
In the 2022 Spring Statement, the Chancellor of the Exchequer introduced a Lower Profit Threshold (LPT) for Class 2 NICS.
This means those who are filing SA returns from 2022/23 onwards and have profits from the Small Profit Threshold (SPT) up to the LPT will now no longer need to pay Class 2 NICs.
To ensure you retain entitlement to contributory benefits HMRC will add 'Treat as Made' Class 2 NICs to your account. 
However if your self-employment earnings were below the SPT of £6725 you may of left a gap in the year.
You can voluntary pay off the gap through your self-assessment account. A full year voluntary would cost an amount of £179.40.
Thank you.
Posted Fri, 28 Jun 2024 12:52:26 GMT by Ivan Horn
Hi Just what I wanted to hear, good to know that 2023/24 won't be an NI gap year. Thanks. Ivan

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