NI Contributions

tilly2484

Hi everyone. Just a bit of advice.

Quick bit of info. I have worked all my life and tax and NI have gone out via my salary. The past 2 years I have also run a business in my spare time and done my self assessment tax returns etc. But I was exempt from NI contributions. Now as of Jan 2012 I am fully self employed so I'm assuming that I must start paying them now? Am I right in thinking that you pay them twice annually?

Notmyrealname

You will have to pay Class 2 NIC which is £2.50 a week billed every 6 months unless your profit is below the small earnings exception limit at which point you can apply for an exemption certificate although my advice is not to as although Class 2 NIC exclude you from cont based JSA it does count towards contributions based health benefits such as ESA.

If you earn enough you will be billed Class 4 NIC when you complete your self assessment. If you don't do it online already I suggest you do as it makes life a whole lot easier as you get the bill there and then.

Also remember any losses can be offset against past or future profit.

PlutoinCapricorn

You can chose to continue to claim exemption on the grounds of low earnings if relevant, but as you say paying the NI gives you access to certain benefits.

Many people take out a monthly Direct Debit for the Class 2.

The Class 4 NO levy (8 or 9%) only applies if the profit is over a certain amount.

Cadelegado

Hi!
I apologize for being off topic but I have a question what is NI?