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Class 2 National Insurance and PAYE

Good evening,

I registered for self assessment last year as I wanted to start an online side business. I got a letter from HMRC asking me to pay class 2 NICs but my business will not give me the £ 5725.00 a year after which I need to pay, plus I am employed full time and on PAYE.

My question:

Do I need to pay class 2 if I am on PAYE?

If I pay NICs through my employment, will I loose my rights if I do not contribute class 2 even if my business earnings are below the necessary threshold?

Many thanks for your help!

Comments

  • hawk30
    hawk30 Posts: 416 Forumite
    I got the same thing yesterday and called them. If, in your self-employed work, you earned less than the threshold, you go to their website and complete form CF10 to get a certificate of small earnings exception. You also have to send them an income statement showing your earnings for the last tax year. If you pay NI through your employment, this will not affect your entitlement to state benefits.
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