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Where Taxpayers and Advisers Meet

NIC for self employed pensioner

xazy
Posts:3
Joined:Tue Jan 23, 2018 1:49 am
NIC for self employed pensioner

Postby xazy » Tue Jan 23, 2018 2:12 am

I am 66 years old pensioner but still working as self -employed. This is my first year receiving state pension of £6,500 a year. My business income is £22000 a year.
Now I would like to ask two questions, when I submit my self assessment tax
1) do I have to pay tax for the £22,000 or for the £28,500 ?
2) do I still have to pay NIC ? since I do not need to pay any contribution towards my state pension.
Thanks

robbob
Posts:3228
Joined:Wed Aug 06, 2008 4:01 pm

Re: NIC for self employed pensioner

Postby robbob » Tue Jan 23, 2018 10:02 am

2) do I still have to pay NIC ? since I do not need to pay any contribution towards my state pension.
No - you do get charged class4 NI (full tax year year - bit of a body blow if your birthday is just after the start of the tax year :() and class 2 (up to retirement age) IN the tax year you reach pension age but after that there is nowt (well deserved nowt too !!)

On self employed pages of tax return you put a tick in box 101 to say you are exempt from class 4 in the tax year AFTER you reach retirement age.


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