NIC Class 4 contributions
- Thread starter lucius
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johniosaif
Private Member
Very low cost though
johniosaif
Private Member
Strange, I have been paying these since late eightiesish
scottie5
Private Member
Till you pay your tax bill then you get hit an extra 9% ni on your nett profit.
Olican
Private Member
:RpS_cursing: :RpS_cursing: :RpS_cursing:
lucius
Well-Known Member
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 ??
scottie5
Private Member
You don't have a choice mate as far as im aware, one for @BetterTAX to clarify maybe.
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Ridlerplastering
Member
Surely you don't have to because it's "contributions"
Just wait until it's time to draw your pension!
I have paid them since the days of the stamps with a JCB on them. I know many who don't pay, many who do & many who have had to catch up.
johniosaif
Private Member
Not something I am aware of, i get my accounts done and either get tax back or owe tax,never seen the bit where Ni gets deducted @BetterTAX
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Fourplastering
Member
I pay monthly (about 10.50 I think) and have always had to pay a bit more when I get my assessment done by my accountant.
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BetterTAX
Member
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:
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:
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 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:
johniosaif
Private Member
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.
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.
bubbles65
Well-Known Member
It can't be that simple can it? @BetterTAX
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raggles
Private Member
No it isn't remember you rNational insurance is for more than just a pension. Doctor, Hostpitals etc
johniosaif
Private Member
Can I stop, no chance @bubbles65 you are been milked and they like the milk
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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!
johniosaif
Private Member
Happy for my money to go towards these things.
johniosaif
Private Member
No smiling ....
jesssop
Active Member
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 ****.
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 ****.
BetterTAX
Member
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!!
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!!
johniosaif
Private Member
No one has ever digressed here before, is it deductable?
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