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NS ESA - possible to top up NI?

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23 hours 54 minutes ago #309612 by LittleVoice
NS ESA - possible to top up NI? was created by LittleVoice
Hello. My partner is long-term self employed, with a degenerative health condition that has increasingly been limiting his ability to work for the last couple of years. He has recently been awarded PIP, and would in all likelihood meet the health requirements for ESA support group.

It would have to be new style ESA, however due to low earnings he has a gap in NI contributions for tax years 22-23 and 23-24. Is it possible to fill these retrospectively via voluntary class 2 NICs in order to restore eligibility? I think I've read that it can be done, with some suggestion of a 6-week wait before initiating the application?

Many thanks

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21 hours 3 minutes ago #309615 by David
Replied by David on topic NS ESA - possible to top up NI?
Hi LittleVoice

I would start by reading the following advice from the LITRG ( Low Income Tax Reform Group ).
www.tax.org.uk/hmrc-error-means-self-emp...nce-related-benefits

"Class 2 NICs are important for the self-employed, as they are the determining factor for having a ‘qualifying year’ for state pension entitlement and contributory state benefits.

The 2022 Spring Statement made the following changes for the self employed:-

"Situation A: Those with tax adjusted profits over the lower profits limit (£11,908 for the 2022/23 tax year and in line with the personal allowance in future years) will be required to pay Class 2 NICs as normal, at a rate of £3.15 per week.
Situation B: Those with tax adjusted profits below the lower profits limit, but more than the small profits threshold (£6,725 for the 2022/23 tax year), will not be required to pay Class 2 NICs, but will be treated as having paid Class 2 NICs for the year. (We discuss below exactly what is meant by this.)
Situation C: Those with tax adjusted profits below the small profits threshold will not be treated as having paid Class 2 NICs, so may need to pay voluntary Class 2 NICs (at the same rate of £3.15 per week) if they wish to maintain their entitlement to contributory state benefits.
Consequently, those with the very lowest profits (situation C above) will potentially need to pay voluntary Class 2 NICs if they are to secure a qualifying year for National Insurance purposes, whereas a person with slightly higher profits, up to £11,908 (situation B), will not need to pay anything to have a qualifying year."

You should then check your NI contributions either online:-
www.gov.uk/check-national-insurance-record

or by phone you can call the National Insurance Contributions Office on 0300 200 3500

Let me know how you get on
David

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