Claiming for NIC2 Exemption

ThisWayUp

Hi,

I was wondering if someone can help. Last year my earnings went above the threashold to be exempt from paying NIC2. However this year, my earnings will be below the threshold. I sent the application to apply for a certificate for an exemption, however I received a letter back saying that I cannot apply as my earnings last year were above the threashold.

The CF10 document (which contains the application for exemption states):

“Small Earnings
Do I have small earnings?
You will be classed as having small earnings and may not have to pay Class 2 NICs if your earnings, that is money left after expenses:
· were less than £5,315 for the period from 6 April 2011 to 5 April 2012 and/or
· are expected to be less than £5,595 in the tax year period from 6 April 2012 to 5 April 2013”

Is the letter that received incorrect?

Thanks in advance

Savvy_Sue

I don't know, but did you state explicitly that although your earnings were above the threshold last year, you know / do not believe that they will be above it this year?

Quote back what they've sent to you ...

ThisWayUp

Hi

the letter states:

I am sorry to tell you that your application for a certificate of exception from paying class 2 National Insurance contributions (NICs) has been turned down.

This is because your net profits for the tax year 2011/12 were above the Small Earnings Exception (SEE) limit of £5,315

This means that you must pay Class 2 NICs. We will send you requests for payment every 6 months. We may include NICs that were due previosuly.

Regards,

Savvy_Sue

Then I'd write back quoting the CF10 document: if that's right, you should be entitled to the exemption, and if it's wrong, they ought to change it!