HRMC Class 2 NI Small Earnings

chrisb1357

Hi all,

I have been self emplyoed from around June this year. Not had hardly any work yet apart from a few jobs and my income is ver very low. What are the Pro's and Con's to applying for a Certificate of Small Earnings Exception with the Tax Office as i am struggling to pay my NI. So far i have paid 1 payment by direct debit as well as a back payment via the post office. they have now requested another back payment of around £20 which i cannot afford to pay.

Chris

PlutoinCapricorn

Well, you are certainly entitled to make a claim for exemption on the grounds of small earnings, which would save you around £2.40 per week in the short term.

Is the self employment your only work, or are you currently paying Class 1 as an employee? If self employment is your only work, then by not paying Class 2 you may affect your right to certain benefits.

chrisb1357

Yep it is my only work at the minute. Not going as good as i thought but gave it my best go.

What benifits will it affect or stop. I do have working tax credit but the only covers my normal cost of living

Chris

PlutoinCapricorn

http://www.hmrc.gov.uk/nic/class2.htm

Have a look at this: if you did need to claim certain benefits, your NI contribution record would be checked. I can't give more details but Citizen's Advice could help.

This is exactly why you need to claim small earnings exemption: some people want to pay Class 2 because of possible future benefits.

chrisb1357

Hi,

Cheers for the link. I think i will have to file for a Small Earnings for now.

Chris