Class 2 National Insurance Exception

nxdmsandkaskdjaqd

My son has a small business whilst in full time education and does not current pay NI Class 2 contributions.

In the documents regarding self-employed people with small earnings - Form CF10 it states that:

To work out your total net earnings, deduct from gross earnings
any business expenses you incurred whilst self-employed. For
example, you can deduct rent and rates, insurance, employees’

wages, printing and stationery, repairs and postage.

You should also make an allowance for depreciation of

equipment such as a vehicle if it is used for your business.

My question is regarding an allowance for depreciation. Would this be as per the same rules for his annual Tax Return?

John_Pierpoint

What sort of equipment is he using in his business.
As a small business, he might well be able to write off such investments against tax immediately.
NI (class 2 & 4) is payable on the net profit of his enterprise.
In theory he should register for class 2 and then ask for a certificate of exemption (and make sure he has enough expenses not to go over the limit again:D)

nxdmsandkaskdjaqd

He's a graphics designer so uses Macs and Canon Lenses. The lenses are £500 to £1000, the Canon body was also around £1500. These are currently depreciated assets.

He has had an Exemption, but he went over the £5075 limit last fiscal year, but we didn't include and depreciation in our calculations.