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Are Class 2 Contributions payable for a whole year

Are Class 2 contributions pro rata if you haven't worked a full year ?

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Hi

can anyone tell me if you go over the threshold for class 2 NI contributions and have only worked for part of the year due to either finishing or just starting are the contributions payable for the whole 12 months or for just the amount of weeks worked ?

I thought just for the amounts of weeks worked but HMRC seem to think differently .

Any help would be much appreciated .

Thanks

 

 

 

 

Replies (4)

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By Paul D Utherone
07th May 2019 14:16

When you say "HMRC seem to think differently" is that from a conversation, or just because the client account shows a full year due? If the latter it is most likely due to HMRC / NICO not having recognised commencement or cessation during the year.

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By Paul Hawes
07th May 2019 14:17

You have to notify HMRC separately of when you started/finished self-employment. If you only show the change of dates on the tax return HMRC will amend the calculation to be for the whole year still.

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By David Heaton
08th May 2019 11:33

You are only liable for a particular week if you are ordinarily self-employed. Before you start, and after you finish, you are not an earner so you can't be liable. Having said that, paying for the full year is the cheapest way for someone not in employment to put another year on the clock for state pension purposes. If self-employment ceases because employment has begun, Class 1 (actual or deemed) should count towards the state pension, so Class 2 should not be needed.

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