National insurance contributions

LBaum

I am self employed and my income has dropped below the level where I am required to make NI contributions. I want to keep them up because I had an accident some time back and was able to claim benefits because of my NI contributions. ( second time ever claimed in twenty odd years.) So i think they are woth it.

I was told that in some circumstances NI contributions can be paid for by one of the departments like WTC, JSA etc if you are on a low income.

I never found out who this was and I can't find any information on it.

Does anyone know if , NI contributions can be paid for by " The State' if you are on a low income, and if so which department to
ask?

DX2

Is this any help to you?

If you're self-employed

• you pay 'Class 2' National Insurance contributions at a flat rate weekly amount of £2.40
• you also pay 'Class 4' National Insurance contributions as a percentage of your taxable profits - you pay eight per cent on annual taxable profits between £5,715 and £43,875 and one per cent on any taxable profit over that amount
• if your earnings in the 2010-11 tax year are expected to be less than £5,075 then you may be entitled to the Small Earnings Exception, meaning you don't have to pay any Class 2 National Insurance contributions - you can apply for Small Earnings Exception certificate for the 2010-11 tax year on form CF10

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904

anmarj

• if your earnings in the 2010-11 tax year are expected to be less than £5,075 then you may be entitled to the Small Earnings Exception, meaning you don't have to pay any Class 2 National Insurance contributions - you can apply for Small Earnings Exception certificate for the 2010-11 tax year on form CF10

if you have a small earning exception it does not cover you for state pension and possible other benefits that need the NI contribtuions. I found this about ni credits

National insurance credits

National insurance credits are Class 1 contributions which you do not pay for, except for credits for parents and carers which are Class 3 credits. Credits are added to your contribution record when you are unemployed or have limited capability for work, and in some other situations where you are not working for particular reasons. They will not normally be paid automatically unless HMRC know about your circumstances - for example, you must be signing on with the Jobcentre Plus office, or have a medical certificate. For some types of credits, you also have to apply in writing.
You get credits when you are 16 for the first three years of your contribution record if your record would otherwise be insufficient. You may also be entitled to credits for when you are on an approved training course. You can get credits for weeks doing jury service, weeks in which you get Carer’s Allowance, and for weeks in which you get Statutory Maternity Pay, Statutory Paternity Pay or Statutory Adoption Pay.
If you are a man, you will get NI credits if:

• you're aged under 65
• you've reached or are over the state pension age of a woman with the same date of birth as you
• you're not paying contributions on earnings because, for example, you have taken early retirement.
• National insurance credits will not help you to qualify for all benefits.

For more information about state pension age, see Benefits for people over sixty.
The rules about when you get credits and when you have to apply for them are very complicated. If you have a query about national insurance credits you should consult an experienced adviser, for example, at a Citizens Advice Bureau. To search for details of your nearest CAB, including those that can give advice by email, click on nearest CAB.


part in pink is relevant