NI

Question 1

Class 3 contributions

Answer 1

Only paid for a year if the individual has insufficient class 1 or 2 NIC for that year.
Cannot be paid in the tax year in which the person reaches State pension age or any subsequent year.
Can be paid upto 6 years after the tax years to which they relate.
Subject to residency conditons.
Must be resident in the UK throughout the year concerned.

Question 2

Class 2 contributions

Answer 2

Paid by self employed between ages of 16 and state pension age.
NICO must be notified immediately (Possible penalty if not done by 31st Jan after the end of the tax year in which they become liable).
Class 2 is 2.95 flat rate where profits exceed £6,205 but are now paid annual via self assessment. for 28/19 paid 31st Jane 2020.
Below 6,205 not requirement to pay however this is an option at the end of the tax year.

Question 3

Class 4

Answer 3

Class 4 are paid at 9% on profits between 8424 and UEL of £46,350.
Where profits exceed 46250, paid at an additional 2% in all profits, uncapped.
Class 4 NI conts are included on an individuals income tax self assessment. payments are made with POAs and balancing payments, along with Income tax
If paying max class 1 main rate then class 4 at 2% on all £8424 and no class 2 required.