NIC Small Earnings Exception certificate - will i lose benefits?

experience

I got hit hard by the recession and have earnt below the threshold for National Insurance Contributions and so am eligible for the NIC Small Earnings Exception Certificate.

I've had a really bad year money wise and so i'm claiming working tax credit, housing benefit & council tax benefit where i get approx £360 per month.

If i fill in the NIC Small Earnings Exception Certificate will i lose these benefits?

mossy

No you'll still be eligible to those benefits.

mossy

Here we go, I've found a link to the HMRC page about NI and state benefits. There are some benefits that you would not be entitled to if you get an exception certificate and stop paying NI so you may want to speak to someone at HMRC if you're unsure.

But like I said you would still be entitled to tax credits, housing benefits and council tax.

Link: http://www.hmrc.gov.uk/ni/intro/benefits.htm#1

experience

Thanks for the link Mossy ! Much Appreciated

Becles

I you have the certificate, you get a much lower rate maternity and I don't think you get any help if you are ill or have an accident etc., and can't work. It's worth paying if you think you might need to claim sickness or maternity benefit in the future. The contributions also go towards your state pension too, so check that out as well.

stazi

THe SEEC is false economy when the Class 2 NIC is only about £2.50ish pw. Pay the Class 2 NIC if you can, as they go towards all state benefits except JSA.