rrjmaier

Thank you for that clarification. However the question then remains, why the section on class 2 NI contributions in the Self assessment shows "that you owe Class 2 NIC's amount of £179.40". .... to ensure that the year will count full towards the NI record. If there is nothing to pay and the year will still count towards my pension entitlements, then this should be made clear here. I hope you will be able to amend the website and SA section to reflect this fact, since this is highly confusing. Kind regards

Thank you for your response. However, I have by now submitted my Self Assessment return and it still doesn't show anywhere in my return, only that I have to pay zero tax for 23-24. In order to ensure I am not missing any deadlines I have paid the £179.40 by debit card and have received a confirmation of the payment. Will I have to do anything else to ensure that this payment goes towards my NI for the tax year?

I have just finished (but not yet submitted) my SA100 as a self employed for the tax years 2023-24 and my earnings are between the Small Profits Threshold of £6,725 and the Lower Profits Limit threshold for class 4 NI of £12570. When I get to the section on class 2 NI contributions I am told that "your self employment records show that you owe Class 2 NIC's amount of £179.40. This is to ensure that the year will count in full towards my NI record. However, when I then get to the final calculation (which tells me I don’t have to pay income tax) I cannot see this amount anywhere in the listing. And on the "Class 2 NI contributions page in the SA, there is nowhere on the page where I can select that I want to pay this contribution, and the section for voluntary contributions is only if my income would be below the lower threshold of £6725. How will I be able to pay this amount to HMRC in respect of my NI contributions?

I am in a similar situation. In the tax year 2022-23 I was self employed and earned below the Small Profits Threshold of £6,725, but I opted to pay my NI contribution voluntarily. When i finished and submitted my self assessment very soon after the start of the new tax year (on 10 April 23) it showed that I have to pay £ 163.80 to have the year counting towards my state pension. I paid the amount on 22 April 2023 by debit card. However when I looked at my NI record it still says "Year is not full" ??? How can I assure myself that the money is with HMRC and will eventually count towards my pension record?

Hello, I am holding various shares since over 15 years and I am considering selling these in the near future (the next 2 years or so). My Capital Gain will be in the order of £15 - 20k. I am a higher rate tax payer. Let's assume the tax free threshold will be £3000 in TY 24-25 as announced previously. How is the CG tax calculated? The majority of the gains in the value of the shares were realized in the early years of the investment with only marginal gains or minor loses in the later years. Are the tax free thresholds applied successively for past years (see example A below) or simply applied at the current rate when the gain is realised i.e. the shares are sold (example B). For example Shares bought in 2015 cost 50k, 2017 value 65k, 2019 value 80k, 2024 assumed value 100k: selling 2024: total gain 50k over 9 years. A) Total gains 50K over 9 years = 5.1k per annum on average, for 2015 to TY 23-24 tax free threshold was greater than the gain per annum hence no tax to pay for these years and only in 2024-25 is the tax free threshold (£3k) below the gain, hence: £5.1k gain p.a. minus £3K threshold = thus tax to be paid on 2.1k at the higher rate (approx £420). B) CG Threshold in TY24-25 assumed to be 3k : hence 50k gain in total over 9 years minus 3k tax free = 47k are taxable at the higher rate (approx £9.4k)? Thanks for the clarification