Does my Class2 NI go towards my state pension?

JaneBloggs

I spent a few years working as a designer, both PAYE (contracting) and freelance. I have since gone into full-time PAYE jobs with the odd freelance job on the side. I have still never earned more than a few hundred pounds in a year as freelance but I am still paying my class 2NI.

What happens to this contribution? I am paying Class 1 NI through my 9-5 job and Class 2 NI for any freelance work (not earning over £5,725 a year for this), so am I paying 2 lots of NI for no reason? Or does my Class1 AND my Class2 contribution go towards my future state pension?

Will my state pension still be the same regardless of whether I pay just Class 1 or both Class 1 AND Class 2 NI?

Thanks!

xylophone

http://www.hmrc.gov.uk/working/intro/class2.htm might be worth a look.

mania112

You may be able to defer your Class 2 National Insurance contributions if you expect to pay:

both Class 1 and Class 2 contributions in a tax year

Class 1 contributions on weekly employment earnings of at least £797 for the whole tax year (2013-14 rate)