NI question

[frankie007]

Hi all,
I have been self employed sole trader since 2016. I do my own self assessment. I was checking my NI / state pension situation and noticed that tax years 2022/23 and 2023/24 are showing as "year not full". I went back to look at my records and class 4 NI was paid both years but no class 2. I don't know how this happened as I haven't done anything different from previous years. HMRC has done calculations and I paid what was owed. I didn't know that it is possible not to pay class 2 NI contributions.
I called HMRC this morning and they claim that I am no longer registered as sole trader. They suggested that I re register. I have just last week submitted my 24/25 self assessment under usual UTR. I have never stopped being sole trader, surely I would need to of fill in a form to do this? I am reluctant to register again, I don't know why would I have to do that? I want to be up to date with my NI contributions though so I am a bit stuck as what to do. Can anyone advise please

 

[DWS]

Are all the previous years of self assessment showing as full years?
Have you earnt less than the Class 2 threshold since 2022? In which case you would not have to pay it automatically you would need to do so voluntarily

 

[frankie007]

Thanks for the reply DWS, previous years showing as full years
22/23 profit from self employment £39000.00
class 4 NI paid £2700.00
class 2 0.00
23/24 profit from self employment£17400.00
NI class 4 £433.00
Class 2 NI - not mentioned at all on the form
I have never reported profit under the threshold.

 

[DWS]

Thanks for the reply DWS, previous years showing as full years
22/23 profit from self employment £39000.00
class 4 NI paid £2700.00
class 2 0.00
23/24 profit from self employment£17400.00
NI class 4 £433.00
Class 2 NI - not mentioned at all on the form
I have never reported profit under the threshold.

Class 4 does not affect your qualifying years Class 2 does, even though you no longer have to pay Class 2 it was stopped in 24/25 you still should have paid it prior to this, does your previous years before 2022 show as class 2 N/I paid on your tax calculations from HMRC?
Did you maybe have any employment income before 2022 that gave you a full year?
Or have you mistakenly ticked the ‘ceased trading’ box on your tax return?

 

[frankie007]

I just looked, the 2020/21 is showing i made no class 2 contributions but year is showing as full year. Previous years are not available to see as tax calculation in detail so I can not tell what happened there.
I do not think I pressed ceased trading button

 

[DWS]

I just looked, the 2020/21 is showing i made no class 2 contributions but year is showing as full year. Previous years are not available to see as tax calculation in detail so I can not tell what happened there.
I do not think I pressed ceased trading button

Seems strange if you made no Class 2 contributions that you have a full year showing, you have only been self employed since 2016 no employment or NI credits from anywhere else?

 

[frankie007]

No, I was self employed since 2016 and last job I had was in 2015. I don't know why is HMRC asking me to reregister as sole trader and the person I was speaking to wasn't helpful at all

 

[frankie007]

Also to stop being a sole trader I would probably had to of told HMRC and submitted final assessment?

 

[DWS]

Just phone HMRC back, hopefully you get someone a bit more helpful and then explain what you have here, tell them you have never ceased to trade and if you have indeed been removed from being self employed tell them this is incorrect and ask them to reinstate you.
You may then need to phone the N/I helpline and ask them on how you can pay for the missing last few years.

 

[frankie007]

Thank you, I will do that

 

[frankie007]

After 4 hours on the phone I think it is sorted.....maybe.
I managed to pay for 2 years of NI class2 contributions that were missing. I was told it might take 52 weeks to clear....seriously.