Class 2 nic

wright39

Hi there,

I have a full time job and a part time hobby making stickers, T shirts and decals. My hobby makes sales of say £1-1,500 per year. Do I have to pay class 2 nic. I know there is a threshold of £5,500 before you have to pay them or does that only apply to someone who is self employed as their full time job? Again this is only a hobby and it doesn't make me much money after expenses.

Dan

madgagoo

You have to pay class 2 NICs if you are self employed, as you are. However if you earn less than the small earnings exemption, £5725 for 13/14, then you can apply for an exemption to not pay. If you don't apply for the exemption then you have to pay them.

See http://www.hmrc.gov.uk/forms/cf10.pdf to apply.

PlutoinCapricorn

Your PAYE Class 1 contributions will entitle you to benefits etc. so there is no need to choose to pay Class 2.

You do need to claim exemption on the grounds of low earnings: you normally get a form when you register as a sole trader.