National Insurance - employed & Self employed - confused???

aloevera_3

I wonder if you can help as I'm a little confused.

I am currently employed paying National Insurance at 11% (I assume). I also run my own business part time, and I also pay National Insurance monthly by Direct Debit and I have been doing so for the past 4 years - class 2 I think.

However on flicking through this site I get the feeling that maybe I shouldn't be paying National Insurance twice. i'd really appreciate it if you could let me know if...:

• Am I correct, should I only be paying once?
• What do I do re all the NI I've paid over the 4 years?
  
  Thanks

Tallymanjohn

If you earn (nett) over £4465 (for '05-'06) in your SE job, then you must pay class2 NI, irrelevant of whether you paid NI in your main employment. If it was under this figure then you can claim small earnings exemption by completing a form - CF10 - available on-line from the IR website. I don't think you can backdate it, but may be worth asking the question.

Murdina

If you were earning enough in both activities to reach what used to be the upper earnings limit for NI (now there is an unlimited 1% band) you can apply for deferrment or claim some NI back. I think you would have to be earning about £2,795 a month in 2006/7 to be able to defer the self-employed NI. Form called CA72B. Incidentally you will also be paying class 4 NI on your business profits and this too could potentially be defered if your employed earnings are enough.