Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Sat, 06 Jul 2024 20:43:12 GMT by Stephen Adams
On the page is says 'If your taxable profits are from £6,725 to £12,570, 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'. But then directly below it, it says I owe £179.40 and so I'm confused? Can anyone help explain?
Posted Fri, 12 Jul 2024 14:06:09 GMT by HMRC Admin 25 Response
Hi Stephen, 
Class 2 NIC is a voluntary National Insurance payment, where the net turnover (net profit) is below the 'small profits threshold for the year.
In 22/23, 23/24 & 24/25 this threshold is £6275.
If your net profit exceeds this sum, then £3.45 is compulsory and is payable for each week you traded (£179.40 per annum).
It is collected through self assessment.
Class 4 NIC is payable where your net profit exceeds £12570.
3. Class 2 and Class 4 National Insurance (self-employed)
Thank you 

You must be signed in to post in this forum.