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  • FIRST POST
    • mark88man
    • By mark88man 12th Mar 17, 3:30 PM
    • 3,051Posts
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    mark88man
    Just checking NI For OH - Not formally Self Employed
    • #1
    • 12th Mar 17, 3:30 PM
    Just checking NI For OH - Not formally Self Employed 12th Mar 17 at 3:30 PM
    Hi

    I just want to check the right thing to do, or whether the right thing is to do nothing.

    My OH has a nearly full NI Contribution record (Child benefit / Teaching work) until April 2014 when she left work to look after DS2. She will be back to work this year now all that is sorted.

    During the gap she worked as a tutor for between 7 and 10 children (individually!) with about £7000 a year typical income. This was declared on her self Assessment, as other income, but no tax was due as within her 0% allowance. She was not declared as Self Employed, or Sole Trader as the definitions of these didn't seem to fit what she was doing .

    However, reading around the latest budget got me thinking about NI - and whether she should be paying some to make sure she gets the most out of her SP. So I think my questions are:

    * Can she still pay Class 2 contribution for the last three years (maybe a different answer)
    * Should she do this
    * Will her not being formally declared as Self Employed make a difference, and can we do that retrospectively - or even will we fall foul of HMRC for not being timely in this declaration.

    Hope thats enough information - happy to add more
    Things happen for a reason. Often the reason is we are stupid & make bad decisions.
    Weight 2/15 125.7 Kg : 31/12/16 - 105.5Kg : Targets - 100Kg by 3/17 then 200lb by 31/12/17
    1/17: CC:7524@0% - Car Loan:14K@3.4% - Mort:156K@2.9% - Savings:1k@4.5%
    Decrease in Total Debt for 2016 - £13.4K
Page 2
  • jamesd
    There's no benefit in getting to more than thirty years before 6 April 2016 for her so if she has the choice just one of those years would be better than two. But whether she gets the choice will depend on her income in those years, might be mandatory. Class 2 is so cheap that it's not a big deal.

    On the early retirement side I'm not sure whether we've discussed the great deals that those who are approaching and over 55 can get from pension contributions. DB then taking 25% tax free lump sum each year can be great if you can afford it. Can potentially eliminate the income tax on around a quarter of pay for many years and be a great way to build up funds for early retirement.
    • sheramber
    • By sheramber 13th Mar 17, 10:06 AM
    • 3,866 Posts
    • 2,874 Thanks
    sheramber
    N I rates here

    https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

    CLASS 2 should have been paid each year unless small earnings exemption was claimed up to 2014/15

    There is no small earnings exemption for 2015/16 and 2016/17
    • mark88man
    • By mark88man 14th Mar 17, 12:47 PM
    • 3,051 Posts
    • 6,410 Thanks
    mark88man
    OK looks like we will have to pay in arrears for 2014/2015 and 2015/2016. But will only get one years benefit from it (ie to take OH to 30 pre 2016). But that's OK as it will be £250 +/- or so for a good return


    Then she will pay for 2016/2017 from this tax years income. That will be one of the remaining 6. Then we will have 5 years to gain over the remaining period
    Last edited by mark88man; 14-03-2017 at 1:10 PM. Reason: typos
    Things happen for a reason. Often the reason is we are stupid & make bad decisions.
    Weight 2/15 125.7 Kg : 31/12/16 - 105.5Kg : Targets - 100Kg by 3/17 then 200lb by 31/12/17
    1/17: CC:7524@0% - Car Loan:14K@3.4% - Mort:156K@2.9% - Savings:1k@4.5%
    Decrease in Total Debt for 2016 - £13.4K
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