National Insurance

Options
dave1223
dave1223 Posts: 56 Forumite
in Cutting tax
Hi i have just started up as self employed and have had a letter from the national insurance ..

It says national insurance contributions..

Does this mean that it is optional to pay or does this mean that i have to pay?

Im not sure as i have set a direct debit up for my weekly NI but no payments have been taken yet..

Hope someone can help

Thanks

Dave

Comments

  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    Options
    unless you qualify for low earning exemption then yes you must pay NI contributions.
  • dave1223
    dave1223 Posts: 56 Forumite
    Options
    Ok i wasn't sure if it was a contribution for payments that i didn't make while i wasn't working...?

    I was off work for a good 6 months before starting self employed i was thinking that the contributions were optional payments for the time i wasn't paying N.I as to catch up with the payments..?

    Please correct me.. again..

    Thanks

    Dave
  • dave1223
    dave1223 Posts: 56 Forumite
    Options
    bump...????????????
  • System
    System Posts: 178,094 Community Admin
    Photogenic Name Dropper First Post
    Options
    What else does it say on the letter?
  • Sully316
    Sully316 Posts: 49 Forumite
    Options
    Class 2 NI contributions are due from the day you commence self employment. The only time you can get these refunded would be if your taxable profits are less than £4,825 at 5th April 2009.
  • dave1223
    dave1223 Posts: 56 Forumite
    Options
    No But Why Does It Say Contribution?

    Doesn't "contribution" Mean Optional ?
  • CIS
    CIS Posts: 12,260 Forumite
    Name Dropper First Post First Anniversary
    Options
    Main Entry:con·tri·bu·tion [URL="javascript:popWin('/cgi-bin/audio.pl?contri02.wav=contribution')"]audio.gif[/URL]Pronunciation: \ˌkän-trə-ˈbyü-shən\ Function:noun Date:14th century 1: a payment (as a levy or tax) imposed by military, civil, or ecclesiastical authorities usually for a special or extraordinary purpose2: the act of contributing; also : the thing contributed

    its a contibution because you contribute to the NI fund.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    Options
    no, contribution doesnot mean optional ; it mean to give (as in support or money)
    basically your 'contributions' are your 'payments'
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608.1K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 248K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards