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N I Contributions - Class 2
Lucylocket01
Posts: 194 Forumite
in Cutting tax
Would anyone be able to tell me what benefits there are to paying class 2 National Insurance contributions. This is for a self employed person, this person is paying them I believe at the moment voluntary because they are not earning enough to pay tax.
About 3k a year. At the moment they are paying be direct debit for class 2 at £11.50 per month.
Would there be any benefits to this long term? Say if they became ill or work dryed up and they needed to claim some kind of benefit in the future?
About 3k a year. At the moment they are paying be direct debit for class 2 at £11.50 per month.
Would there be any benefits to this long term? Say if they became ill or work dryed up and they needed to claim some kind of benefit in the future?
0
Comments
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Class Two I believe are Self-Employed Contributions, not Voluntary. They are cheaper than the Voluntary.
They will count towards State Pension, and other benefits - look at section 21 on the link below:
http://www.opsi.gov.uk/acts/acts1992/ukpga_19920007_en_4#pt2-pb1-l1g20
Hope this helps.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
On earnings of 3K a year you can apply for an exemption form.
http://www.hmrc.gov.uk/forms/cf10.pdf
You first need to decide if the benefits are worth continuing to pay it or not.0 -
ring 0845 302 1479 for NI advicethe only debt left now is on credit cards! The evil loan has gone!! :j:j0
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On earnings of 3K a year you can apply for an exemption form.
http://www.hmrc.gov.uk/forms/cf10.pdf
You first need to decide if the benefits are worth continuing to pay it or not.
Thats why I was asking.I knew that they would be exempt because of low earnings.
Thats what I really need to know. What are the benefits from class 2 contributions.
Thanks all0 -
makes the years qualifying towards your state pension, also towards job seekers allowance, bereavement benefit, incapacity benefit...
if you decided to get a small earnings exception certificate and later decide you want to pay those years towards your pension, they will cost about 3 times as much and will ONLY go towards your pension.the only debt left now is on credit cards! The evil loan has gone!! :j:j0 -
Lucylocket01 wrote: »Thats why I was asking.I knew that they would be exempt because of low earnings.
Thats what I really need to know. What are the benefits from class 2 contributions.
Thanks all
I believe I answered this in my post above.(AKA HRH_MUngo)
Member #10 of £2 savers club
Imagine someone holding forth on biology whose only knowledge of the subject is the Book of British Birds, and you have a rough idea of what it feels like to read Richard Dawkins on theology: Terry Eagleton0 -
seven-day-weekend wrote: »I believe I answered this in my post above.
You did and Im most grateful. Thankyou0 -
Class 2 does not count towards JSA.0
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