NIC Class 4 contributions

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Never paid them before just got a big bill for them though and so have two mates of mine.
 
Strange cos as soon as you get a UTR they normally send out info and bill for NIC contributions
 
Ive just registered for self assessment that's whats brought it about talking to people its what we used to call stamps which I used to pay before I whent abroad a few years ago most people ive spoken to have never paid them I know my son never has and he is 32 and the bloke ime working has never paid them either and he is 47 some people are telling me they are optional and others say you have to pay them ??
 
NICS, National Insurance Contributions, Schedule D stamps...

If you're PAYE, it's all taken care of in your salary. You pay some and your employer pays more towards yours. One of the reasons there are umbrella companies out there and HMRC are looking into ways to stop false self-employment.

You seem to all be self-employed or sole traders though.

In which case, when you register for self employment you should have completed a direct debit to collect your class 2 contributions at £2.70 per week:


"You pay Class 2 National Insurance contributions at a flat rate of £2.70 a week. However, if your earnings are below £5,725 per year (2013-14) you might not need to pay"

On top of class 2, when you complete your self-assessment tax return, not only is tax calculated, there is also a calculation for class 4 NICs, payable on net profit:


Class 4 contributions are only payable if:


  • a self-employed person has trading profits chargeable to income tax under Cases 1 & 11 of Schedule D (subsequently Self Assessment cases), and
  • those profits exceed the lower (profit) limit, and
  • exception does not apply
Class 4 National Insurance contributions are paid in addition to the flat rate of Class 2 National Insurance contributions. These contributions are profit related, so unlike Class 2 not all self-employed people will have to pay them.
Class 4 National Insurance contributions are also payable by employed people who are treated as self employed for National Insurance contributions purposes.


and:

[h=2]Class 4 National Insurance - how much you pay
[/h]The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9% on annual profits between £7,755 and £41,450 (2013-14) and 2% on any profit over that amount.

You may not be aware that you have paid any class 4 as the amount payable to HMRC is calculated as one amount, so unless you do the tax return yourself or you ask your tax agent/ accountant about it, you might think you are not paying.

If you do not pay it, yes, when you want your pension you may not have any entitlement. This is when voluntary contributions can be made to make up the difference, and if there has been a gap in paying NICs.

Have I explained it OK?
:RpS_unsure:
 
..... can I just add that for the pond life working cash on the dole, you need not worry about your retirement, as your stamps are paid by the rest of us. :RpS_angry:
 
..... can I just add that for the pond life working cash on the dole, you need not worry about your retirement, as your stamps are paid by the rest of us. :RpS_angry:
Working Man and woman sponsor the mob at the top and at the bottom
 
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when i applied for my state pension 6 months before you are 65, you must have 30 years of stamps or credits to your name or you will NOT receive full state pension about £116 per week. they are hot on these payments . although you get no extra credits when you have paid in for more then 30 years.
 
So as I've paid over 30 years now, can I stop?

i would stop making payments.
why dont you approach them as you have fully paid up your contributions, you do not want to end up like myself making extra payments for nothing.
 
i think all the tax iv paid went on blowing up people wearing tea towels who live in caves!
or mps sandwiches
CUUNTS
 
No it isn't remember you rNational insurance is for more than just a pension. Doctor, Hostpitals etc

yes you are correct about the nhs. when i had my quad. heart bypass i was told that the costings to the nhs for that op and the after care was £30,000. which is a hell of a lot more then i ever paid in!
 
yes you are correct about the nhs. when i had my quad. heart bypass i was told that the costings to the nhs for that op and the after care was £30,000. which is a hell of a lot more then i ever paid in!
Happy for my money to go towards these things.
 
the NI just goes in the pot as does everything else, just another tax like tv licence ( why the **** do we let the ***** charge us to watch ******* tv? and the cheeky ***** give us foney news that we pay for :RpS_unsure:) MUGS WE ARE ******* MUGS
the ******* rich have enough money to make poverty no existent with no effect to there standard of there own living but thy choose to keep every **** poor? wtf ? im am honestly sick of this ****.
 
Although its been answered anyway, nothing is ever simple when it comes to tax and government. NICs don't just provide your pension and in fact, its not your pension that you're paying for... that's being spent right now! I think the popular belief is that when some of us get to retirement there won't be any pension fund left.

NI does indeed go towards all those other NHS benefits.

Talking of BBC license fee, I just saw on the news that in order to make cuts of £90m they are closing down BBC3! I think they should go for adverts. I am so used to them now along with pausing programmes when I need a, a-hem, break or cup of tea.

I get fed up with being told what a brilliant service they provide of high calibre shows. I hardly watch any BBC.

I digress!!
 
Although its been answered anyway, nothing is ever simple when it comes to tax and government. NICs don't just provide your pension and in fact, its not your pension that you're paying for... that's being spent right now! I think the popular belief is that when some of us get to retirement there won't be any pension fund left.

NI does indeed go towards all those other NHS benefits.

Talking of BBC license fee, I just saw on the news that in order to make cuts of £90m they are closing down BBC3! I think they should go for adverts. I am so used to them now along with pausing programmes when I need a, a-hem, break or cup of tea.

I get fed up with being told what a brilliant service they provide of high calibre shows. I hardly watch any BBC.

I digress!!
No one has ever digressed here before, is it deductable?
 
I got a letter today saying I have not paid my tax :RpS_scared: Although I have.... they are saying its not enough :-( Accountant is on the case first thing to sort it out :-(

I can see this being an expensive week :-(
 
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