Should I opt out of Class 2 NICs?

tallphil

Hello,

I look after my 3 year old child who receives Child Benefit in my name. I believe this gives me automatic Home Responsibility Protection of my NI record for state pension purposes, even if I pay no NICs.

I am registered self-employed and I currently pay Class 2 NICs which costs £125 per year. But my earnings are low - below the Class 2 NIC Small Earnings Exception of £5,075, so I could opt out.

My question is, is there any point paying these Class 2 NICs, or should I opt out? Is it giving me any entitlements I'm not already getting from HRP?

My wife is a higher-rate taxpayer and we have savings, so I doubt I'd be eligible for any means-tested benefits regardless of the NI situation.

Many thanks for any advice.

builderken

I applied for a "Small Earning Exemption" certificate and was granted one. however I am now trying to claim sick benefit ((Now Employment and Support Allowance) - I have been told I am not entitled to it because I have not paid my class 2. I suggest - keep paying.