NI - Small earnings exemption - should i apply?

goldndelicious

Hi all, hope someone might be able to advise me.

I work full time, and earn a decent wage. In my spare time, i run a small business, of which i take home less that the small earnings threshold meaning i am entitled to apply for NI class 2 exemption.

I have applied, and been granted, this previously, and is now due for renewal.

My question is, should I?

I understand the benefit of not having to pay £2.50 a week, but what are the consequences? will this mean i won't get a full state pension at the end or something else?

Please bear in mind that i have a normal full time job and pay all the usual taxes through PAYE as well.

Thanks in advance

Horace

If you pay PAYE through your full time paid employment then I wouldnt have thought it would impact if you paid Class 2 contributions as well.

Savvy_Sue

Horace wrote: »

If you pay PAYE through your full time paid employment then I wouldnt have thought it would impact if you paid Class 2 contributions as well.

Nor will it impact you if you don't pay them: if you're already making NI contributions through PAYE then there is, AFAIK, absolutely no benefit to paying the s/e ones.