self employed - tax query (NI)

Wild Card said:

From 6th April 2022 (relevant to 2022/23 tax year) Class 2 voluntary NIC does not have to be paid if taxable profits exceed the Class 2 NIC Small Profits Threshold of £6,725, but do not exceed the Class 4 NIC Lower profits Limit of £11,908.​


If your total taxable profit sits in between these 2 thresholds, HMRC will treat your Class 2 NIC as being paid. No physical payment is needed by individuals, and National Insurance credits will continue to be accumulated.

If your taxable profits sit below £6,725 then Voluntary Class 2 NIC will still need to be paid to HMRC to ensure National Insurance contributions are credited.

You should be making class 2, its a really cheap way to get a pension stamp...unless you don't need to.
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Do you not find it strange mate that if you earn less you have to pay, if you earn more you don't 🤷‍♂
I'm sure there's a logical explanation and you will know 🤣🤣
 


STUMPY said:
I don't get the logic there. If profits are between £6725 and £12570 you don't pay it but get a credit. If profits are less ie below £6725 you have to pay it if you want a credit 🤷‍♂️ Doesn't make sense to me 🤣🤣
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Just realised I'm talking about this tax year 24/25, not 23/24 which the op is asking about.
 

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