Self-employed taxpayers pay class 2 and class 4 national insurance contributions. Class 2 NIC’s were due to be abolished from 6 April 2018, however this has now been delayed to 6 April 2019.
A full 35 years of NI contributions are needed to achieve a full single-tier state pension. So the delay creates a window of opportunity for those who have low earnings from self-employment to add an extra year into their NI contributions at relatively little cost.
Where earnings from self-employment are below the small profits threshold, £6,205 for 2018/19, you are entitled to but not obliged to pay class 2 NIC.
However deciding to pay class 2 NIC voluntarily will add to your contributions record at a cost of £2.95 per week, whereas voluntary Class 3 contributions are currently set at £14.65 per week.
For more information please contact Lesley Sutton on 01484 550037 or email email@example.com