Self Employed and National Insurance question

[Deleted User]

Good evening all,

I asked this question without my luck on the employment board, so wondered if any lovely people over here may know?

I became self employed in July 2013 and immediately set up a DD for National Insurance, so I keep things up to date.

However I was recently told that as I get child benefit and working tax credits etc (low earner) that my stamp would be paid for me, so effectively I'm paying twice, or for something that I don't need too.

Tried to phone HMRC but just couldn't get through. I will try again but does anyone know that if your in receipt of child benefit your national insurance is up to date?

Thanks

Akashearsy

I'm not sure that is true income is income and therefore NIable above the threshold Jobseekers etc it is paid but do check

[Deleted User]

Thanks, would like to add that I am not obliged to pay NI as I don't earn enough, I chose to as I think its important. But obviously don't want to be if my stamp is being sorted out for me by the government.

pukkamum

Deleted_User wrote: »

Thanks, would like to add that I am not obliged to pay NI as I don't earn enough, I chose to as I think its important. But obviously don't want to be if my stamp is being sorted out for me by the government.

I paid mine whilst earning low enough SE not to bother, it meant that when I had my 3rd baby I got maternity allowance which I wouldn't have got had I not been paying my stamp.
However you are right in a way when you have children and stay at home your pension rights are protected so you will still have the required years for your basic pension.

pukkamum

To summarise, it's not your national insurance that is paid by the government, it's just your pension years that are protected, oh and only for a certain amount of years.

[Deleted User]

OK, think I get it, so is it worth me still continuing to pay then?

(I'm not planning on anymore children, so don't have to consider maternity allowance etc, just concerned about pension, or lack of it!!).

pukkamum

Deleted_User wrote: »

OK, think I get it, so is it worth me still continuing to pay then?

(I'm not planning on anymore children, so don't have to consider maternity allowance etc, just concerned about pension, or lack of it!!).

Your basic pension will be protected as will other national insurance based benefits, so unless you are intending to get pregnant I wouldn't pay the extra.
The credits only last whilst you are recieving child benefit for a child under 12, after that you would need to be in reciept of working tax credit and would have to apply.

[Deleted User]

That's great thanks, just the info I was after.

So I may as well cancel my dd with them and email them to say.

My children are approaching 7 and 6 so I have a further 6 years before I need to consider this. Who knows what I will be doing or how much I will be earning by then.

Many thanks.