Are you not allowed to pay N.I contributions if you earn less?

pinkpansies

I am self employed sole trader. I always earn less than £4000 per year profit. I did have a certificate of exemption for NI contributions as I was earning less than the minimum needed. It ran out last april so I was given a form which asked what I wanted to do next (either apply for another exemption certificate or start paying NI contributions). I filled it out saying that I wanted to pay now but have heard nothing from them since. I also remember the form saying I could make voluntary contributions if I hadn't earnt enough, but this was a hell of a lot more than someone who does earn enough, which is strange!

So I am wondering, because I earn less than is required each year to pay NI contributions, does this mean I am not supposed to pay it?

As I understand, as a self employed person in my early 30's, I need 30+ years of paying NI to receive the state pension when I retire.

My question is, as I am self employed and earning less than is required to pay NI contribtions, can I still pay them every year to build up my contributions for when I retire?

AbbieCadabra

HMRC voluntary contributions info

nonnatus

How can your Business survive when you only ever make such a small profit? Just being nosey!

pinkpansies

Because I only work part time and I only have a very small business

yasmup

nonnatus wrote: »

How can your Business survive when you only ever make such a small profit? Just being nosey!

A £4k profit is a £4k profit ... and £4k the OP presumably wouldn't otherwise have.

As long as the business is not losing money, why shouldn't it be able to survive?

Vectis

nonnatus wrote: »

How can your Business survive when you only ever make such a small profit? Just being nosey!

What a strange question!

This is profit, the amount which is left after all the expenses and costs are paid. Are you confusing it with turnover?

pinkpansies

Some years I make a lot less than £4000 profit. But I would rather work and try to bring in some income myself than go on benefits as I find it very hard due to personal circumstances to get a job. It works for me and I am happy

Percy1983

If your not paying NI in any other way I would recommend you pay this, I am sure its just a single rate voluntary or forced.

In my case I use the exemption but I am paying NI on a full time job.

InsideInsurance

nonnatus wrote: »

How can your Business survive when you only ever make such a small profit? Just being nosey!

If you wonder how a profitable business can survive the companies making million pound losses must really blow your mind!!