Canceling NIC SEE

omegasquared

I applied for and received a Small Earnings Exemption from Class 2 NIC's for the period of the last tax year 2013-2014 I have been a sole trader and for this tax year also. However, it now looks like I will be earning more than £5885 this tax year.

What is the best way to go about canceling my SEE? Also if I cancel it will I still be exempt from Class 2 NIC's for the last tax year (2013-2014) when I did earn less than £5885?

TheCyclingProgrammer

If you had a SEE for the last tax year and didn't earn over the threshold in that year then you will have no Class 2 NIC to pay for that year regardless of what you earn this year.

Have you actually applied for a SEE for the current tax year? My understanding is that a SEE expires at the end of the tax year in which it was applied for - they don't carry over.

If you didn't apply for a new one then you may not have an exemption for the current tax year anyway. If this is the case you'll need to ring HMRC as you may owe Class 2 NIC from the start of the current tax year until now.

If you do have one for this year then I would suggest you ring HMRC and tell them that you now wish to register for Class 2 NIC and set up a direct debit.

Savvy_Sue

I thought they used to last two years? Could have changed in the years since I've needed one ...

But yes, ring HMRC and say you now need to register for Class 2 NIC.

omegasquared

Thanks. I applied for one this year and received an exemption from class 2 NICs for both this financial year and the portion of the last tax year that I was a sole trader.

I shall ring HMRC and tell them as such. Will I need to pay NICs for the weeks that have already passed this tax year?

Savvy_Sue

omegasquared wrote: »

I shall ring HMRC and tell them as such. Will I need to pay NICs for the weeks that have already passed this tax year?

I believe so, yes. They'll expect you to complete a DD form, so be aware the money could just vanish from your account at any time, backdated.