Topping up your self-employed NIC contributions
In many circumstances it can be beneficial to make voluntary Class 2 National Insurance Contributions (NICs) to increase your entitlement to benefits, including the State or New State Pension if you are self-employed.
You might want to consider making voluntary NICs because:
- you’re close to State Pension age and do not have enough qualifying years to get the full State Pension
- you know you will not be able to meet the qualifying years you need to get the full State Pension during your working life
- you’re self-employed and do not have to pay Class 2 contributions because you have low profits or live outside the UK, but you want to qualify for some benefits
There is also a specific list of jobs where class 2 NICs are not payable. These are:
- examiners, moderators, invigilators and people who set exam questions
- people who run businesses involving land or property
- ministers of religion who do not receive a salary or stipend
- people who make investments for themselves or others – but not as a business and without getting a fee or commission
If you fall within any of these categories it can be beneficial to get a State Pension forecast and examine whether to make voluntary Class 2 NICs to make up missing years.
For more information on self-employed NIC contributions, Book a Free Consultation