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Class 2 Insurance contributions

3 replies

Pinkfrocks · 24/08/2014 18:36

Can anyone tell me if they are compulsory forever? I have enough contributions in my work history to qualify now for a full pension ( have done a forecast online) so do I have to pay these now? Due for full state pension in 7 years.

OP posts:
caroldecker · 24/08/2014 19:14

Like everyone else, NI contributions are compulsary whilst working

Pinkfrocks · 24/08/2014 19:17

That's what I thought but I did see something somewhere ( maybe online) that implied you could stop once your contributions were enough to ensure a full pension.
Obviously I also pay Class 4 which is taken as part of my tax and added to my tax owed when I do self assessment.

OP posts:
TalkinPeace · 25/08/2014 20:23

NI of each category is linked to each separate income stream

you only need to stop paying when you have reached the annual maximum - annual income around £70 k

if your SE income is below the limit you do not need to pay
but class 4 is effectively tax
and if you owe class 4 you are over the class 2 limit

you do realise how little a "full state pension" is don't you

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