Exemption from Class 2 NI

michaeldowney

Hi, I am self employed and have been granted exemption from class 2 NI for a number of years. In the tax year 09-10 I went over the NI maximum for Class 2 by a few hundred pounds and I then got a letter from HMRC to say that they have not granted exemption for 11 - 12 and sent me a bill for the first half of 11 - 12.

Three questions:

A. Does this bill mean that I have paid my dues for the year 09 - 10

B. If not will HMRC also want retrospective payment for tax year 09 - 10

C. If I apply for NI exemption for 12 -13 will I be granted it? (My earnings will definitely be below the new threshold.)

Many thanks in advance.

Savvy_Sue

I am not an expert, but ...

michaeldowney wrote: »

Hi, I am self employed and have been granted exemption from class 2 NI for a number of years. In the tax year 09-10 I went over the NI maximum for Class 2 by a few hundred pounds and I then got a letter from HMRC to say that they have not granted exemption for 11 - 12 and sent me a bill for the first half of 11 - 12. /QUOTE]Exemption always used to be granted for 2 years at a time, so I'd think this was a 'standard' letter because you're due to renew your exemption, if still entitled. And they assume you're not.

michaeldowney wrote: »

A. Does this bill mean that I have paid my dues for the year 09 - 10

Without having the text of the letter, who knows exactly what it means. But did you pay any NI for 09-10? If you didn't, you need to talk to HMRC about what's due.

michaeldowney wrote: »

B. If not will HMRC also want retrospective payment for tax year 09 - 10

I am sure that if you owe them money for 09-10, HMRC will want it retrospectively. Otherwise we could all just delay payment.

michaeldowney wrote: »

C. If I apply for NI exemption for 12 -13 will I be granted it? (My earnings will definitely be below the new threshold.)

Might depend on whether or not you can satisfy HMRC on this point, but phoning them to ask would be your first step.