Small earnings exemption - NI and WTC

katebl

Hi all,

Just a quick one if anyone can advise - when filling in a small earnings exemption form (form CF10), it asks for income - is it right to assume this is just self-employment income and any monies paid from WTC are not included in this to?

Thanks in advance!

stazi

Yes it's only S/E earnings.

However, an SEE is false ecomomy. All an SEE does is allow you to be exempt from paying Class 2 NIC if your S/E earnings are below a certain level. A Class 2 NIC weekly stamp is only about £2.50ish, and this goes towards various benefits such as ESA and State Pension.

katebl

Thanks Stazi, it's not for me but for a relative who is planning to make the contributions voluntarily but would prefer to have the exemption in place if need be - I do agree with your point!

stazi

Just make sure that they pay Class 2 S/E not Class 3 voluntary NIC.