Class 2 Voluntary NIC 22/23 Explained

Class 2 Voluntary NIC blog post. Person confused then understanding contributions. 11th May 2023
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.

 

Follow the link below to find out more about National Insurance Contributions rates and allowances,

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

 

For more information, contact your local Whitings Office.

Disclaimer - All information in this post was correct at time of writing.
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