Class 2 NICs - paying voluntarily

[S_E_H]

Hi all,

Wondered if anyone could help/advise. I am currently self employed and I am registered with HMRC. I work mobile doing bio sculpture gel nails and spray tanning but currently don't earn enough over a year to pay class 2 NICs.

However I am currently doing my tax return and it has given me the option to pay for my class 2 NICs voluntarily and says about doing this to protect my entitlement to my state pension.

For those of you in the same position as me what have you done about this? Do you voluntarily pay or not?

Thank you in advance!

 

[Trashqueen]

If you can afford it, I personally would.

 

[Trinity]

Yes, it was about £11 a month, they changed it to one off payment with your tax return in July (IIRC) this year. It's such a small amount for long term benefits

 

[surf girl]

I've always paid voluntary

 

[S_E_H]

Thanks all - yes I think you're all right, for such a small amount it is going to be worth it as presumably these years will then contribute to my working years for state pension?

 

[holisticzoe]

Yes it will count, you have to pay something like 20 years out of your working life to get a state pension, if you've always paid into it and you will still qualify for a pension, take a a couple of years off paying if you can't afford it, check online how many years you need to be paying.

 

[S_E_H]

Another quick query - whilst doing my online tax return the section regarding paying NI voluntarily currently states that I need to pay £53.20 which I am confused about as I thought it was £2.80 per week therefore would be more than that for the year?

Also, I am currently receiving child benefit (have two young children) so am I right in saying that whilst in receipt of that it contributes as a qualifying year and in which case I don't necessarily have to pay my NI voluntarily?

Oh I'm getting so confused, lol!

 

[Trinity]

It has all changed really recently, literally this year, so I don't know the actual arrangements now. I know I've paid monthly by DD for part of the year and the rest will be billed to me as part of my end of year tax return. I suspect the £53.20 is for part of the year for you, but you're best bet would be to call HMRC and discuss it with them, we're not experts by far