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Where Taxpayers and Advisers Meet

Partnership NI contributions record

hendrixjam
Posts:17
Joined:Thu Mar 24, 2011 3:32 pm
Partnership NI contributions record

Postby hendrixjam » Sun Sep 01, 2024 11:48 am

Hello

Hope someone can help with my query. I was a partner in a UK partnership between 1998 and 2010. E&Y prepared the partnership returns and also all of the partners’ individual returns. In each of my returns and calculations I paid Class 4 NIC. There is no reference to payment of Class 2 NIC. Now, years later, I look at my NIC contributions record on the Government website and for those years I am shown as making no contributions, which therefore reduces my entitlement to the state pension.

I cannot see why E&Y did not include an amount for Class 2 (considering how small it would have been) in its calculations attached to my returns to ensure entitlement to the state pension. Would payment of the Class 4 contributions be deemed to also be payment of Class 2 and the government records are wrong?

Any thoughts would be greatly appreciated as I cannot find any historic NIC information online.

Thanks.

pawncob
Posts:5156
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Partnership NI contributions record

Postby pawncob » Sun Sep 01, 2024 8:33 pm

Class 2 contributions are the responsibility of the S/E person. EY prepared tax calcs (including Class 4).
If you didn't pay Class 2, it's too late to revisit now.
With a pinch of salt take what I say, but don't exceed your RDA

hendrixjam
Posts:17
Joined:Thu Mar 24, 2011 3:32 pm

Re: Partnership NI contributions record

Postby hendrixjam » Sun Sep 01, 2024 9:05 pm

Hello and thanks for your reply. Forgive my ignorance, but what do you mean by S/E person? Wouldn’t the class 2 have been paid at the same time as the class 4 as all are ultimately the responsibility of the tax payer (and so why not include them in the calculation being made for the annual return?). Appreciate your insights.

pawncob
Posts:5156
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Partnership NI contributions record

Postby pawncob » Mon Sep 02, 2024 10:18 am

When you became self employed you should have registered for Tax and NICs.
Class 2 was payable weekly at a rate of £5.65 (increasing to £6.55 before reducing to £2): http://www.taxhistory.co.uk/National%20Insurance%20rates.htm
Class 4 was assessed on profits and included in the tax calculation.
With a pinch of salt take what I say, but don't exceed your RDA


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