National Insurance query

Birdynumnum

Hi Everyone, I returned to the UK last summer after 25 years of working abroad. I work in the building trade and took a job with a local contractor working as self employed with him as sole employer. It didn't work out and I quit after a couple of weeks, I didn't claim benefit as I had a good deal of savings following the sale of my house abroad and these exceeded the £16K benefit threshold and I knew I wouldn't be entitled to any benefit.

I have recently received a bill for National Insurance contributions class 2, as I only worked for 2 weeks I doubt I am liable for most of it. The thing is I am concerned that I will be liable for NI contributions for the period between my quitting my job and now, does anyone know if this is so? I guess I could have signed on to cover NI contributions but I didn't consider it at the time, I am concerned that I may now be facing a large NI bill.

I would really appreciate any constructive advice, I've been out the country for 25 years and really don't understand the NI system.

Savvy_Sue

I suspect you need to tell HMRC you're no longer self-employed. Take a look here and see if that helps.

Birdynumnum

Thanks Savvy Sue yes I will tell them, I'm just worried that it would be cheaper to pay the bill as it's only £2.50 a week self employed and I fear it is more if unemployed and not claiming benefit. Then again I'm guessing that would present problems when completing my tax return as I only earned £800 in the previous tax year.

Savvy_Sue

Birdynumnum wrote: »

Thanks Savvy Sue yes I will tell them, I'm just worried that it would be cheaper to pay the bill as it's only £2.50 a week self employed and I fear it is more if unemployed and not claiming benefit. Then again I'm guessing that would present problems when completing my tax return as I only earned £800 in the previous tax year.

You don't have to pay NI on a self-employed basis if you're unemployed, or if your profit from self employment is less than c. £6000 per year.

Birdynumnum

Brilliant thanks Savvy Sue I'll let them know my status, sorry I've never been self employed before and didn't want to go self employed but the entire building trade now works on a self employed basis, presumably so employers can avoid pension & holiday pay entitlements. Ironic isn't it, the government introduce a bill to ensure everyone has a work related pension and the building trade dodges it giving their employees less rights than they had 20 years ago.

My employer deducted tax at 20% direct from my wages from day one, had I stayed with him he would have paid my tax bill and given me back any overpayment minus the interest he had made on my money - and thats progress - thanks again.