National Insurance

[Evans Electric]

This question cropped up the other day .

Some years back now I stopped paying  self employed NI  contributions as I,d made 40 years of payments,  but does the same apply to an employed person  ?

 

[Murdoch]

As an employee I don't think you can avoid NI.

I'm guessing you stopped paying class 2 NI's which is't much but you should still be paying class 4

 

[Evans Electric]

Yes still liable for Class 4 .

So does the (Now) 30 year rule only apply to the self employed ?

 

[Murdoch]

I think so.

Its changing to 35 years soon and 40 years down the line.

Its worth noting that it USED to be 40 years before New Labour reduced it a few years ago.

 

[ProDave]

I'm confused.

I still get a quarterly bill for class 2 NI

Class 4 seems to be charged annually on your tax return, but I always get billed £0.00 for class 4.  Is that because I don't earn enough, or have paid enough years?

I've paid 35 years of NI contributions so can I now claim exemption from either or both class 2 and class 4?

 

[Evans Electric]

Dave ,   Class 4 is based of your yearly profit...... Class 2  is your State Pension payment ...so I think that now you have paid your quota ,  speak to them .

I remember the last quarterly bill stating  " This is your final payment "  

 

[Murdoch]

I'm confused.

I still get a quarterly bill for class 2 NI

Class 4 seems to be charged annually on your tax return, but I always get billed £0.00 for class 4.  Is that because I don't earn enough, or have paid enough years?

I've paid 35 years of NI contributions so can I now claim exemption from either or both class 2 and class 4?

That would suggest that your annual profits are less than £7956.00

I think there is no exemption for class 4, even if you are over the state retirement page

https://www.gov.uk/national-insurance-classes