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Posted Mon, 16 Oct 2023 17:44:10 GMT by LittleGemz
I am self employed but have not worked at all this year due to illness & have no earnings/profits to declare. I have filled out my yearly Self Assessment form & owe no tax. Do I still have to pay class 2 NIC? my contributions show my pension is at max & voluntary contributions will not alter my entitlement. I am due to retire in 2027. Thank you
Posted Wed, 25 Oct 2023 05:59:06 GMT by HMRC Admin 25 Response
Hi LittleGemz,
If your profit is below the Small Profit Threshold (which it will be in the scenario you describe) you will not be asked to pay Class 2 NICs.
Thank you. 
 
Posted Wed, 25 Oct 2023 11:49:34 GMT by LittleGemz
Thank you for you reply, it's much appreciated. Would I be right in assuming that until my profits exceed the Small Profit Threshold again, I will not have to pay any Class 2 NICs? I have paid for the last couple of years even though my illness has limited me to how much I could do & again I did not exceed the Small Profit Threshold. Is there any reimbursement for the last couple of years?
Posted Wed, 01 Nov 2023 15:51:17 GMT by HMRC Admin 20 Response
Hi LittleGemz,
While profits are below the SPT the customer does not have to pay Cl2 NICs however this means that the year does not count towards State Pension or other benefits.
In previous years when they have paid Cl2 voluntarily below the SPT they can write in to say they have changed their decision to pay and we could refund those contributions,
again though that would impact state pension award in future years as the years would no longer be qualifying when refunded.
Thank you.

 
Posted Wed, 01 Nov 2023 20:52:19 GMT by LittleGemz
Thank you for your reply, you have been very helpful.

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