PTP TR - Unable to pay voluntary Class 2 NIC if profit between £6725 and £12570
Article ID
kba-03835
Article Name
PTP TR - Unable to pay voluntary Class 2 NIC if profit between £6725 and £12570
Created Date
6th April 2023
Product
Problem
No Class 2 NIC is appearing in the tax calculation summary, even if the box has been ticked to pay voluntarily, if the profit level is between the Small Profits Threshold of £6725 and the Lower Profits Threshold of £12570.
Resolution
HMRC have advised the following in their SA103S/SA103F/SA104S/SA104F notes:
If your taxable profits are less than £6,725 or you made a loss, you can choose to pay Class 2 NICs voluntarily to protect your entitlement to State Pension and certain benefits. You must be registered as self-employed to pay Class 2 NICs or to pay voluntarily.
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.
If your taxable profits are more than £12,570 you must pay Class 2 NICs (£3.15 a week).
For more information please see:
https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions#class-2-and-class-4-national-insurance-self-employed
https://www.gov.uk/government/publications/self-assessment-self-employment-short-sa103s
https://www.gov.uk/government/publications/self-assessment-self-employment-full-sa103f
https://www.gov.uk/government/publications/self-assessment-partnership-short-sa104s
https://www.gov.uk/government/publications/self-assessment-partnership-full-sa104f
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