NI Contributions made - but earning £1-3k

newbiesaver55

Can any of you shed any light on this issue for me please?


I became self employed in Autumn 2011 and worked though til Feb, had a baby in March, claimed maternity pay (basic one, sorry I can't remember the name of it) and did a bit of work until November 2013 when I ramped up and did more (SE) work.


So the whole time I've been paying class 2 (?) contributions via my bank account to HMRC.


I now understand that I might not have to pay these as I'm not earning that much, sadly.


Is that right? and could I get a refund for having paid some already...? I don't know what the implications for pension are, if any...?


thanks, N

newbiesaver55

BTW I have tried calling them but I am just on hold for ages each time... anyone?

Darksparkle

Small earnings exception has now been scrapped for 2015/16 but details of it are here for previous years - https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/430536/cf10.pdf

Previous year rates are here - https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

You'd be too late for a refund for any year except 2014/15 but even then you only have a couple of days left.

From 2015/16 it will be dealt with via your SA return.

This is one of the busiest times of year for HMRC so not surprising you are struggling to get through. Best suggestion is to call at 7.45am

newbiesaver55

Thank you sparkle

anmarj

NI also count towwards certain benefits, so if you don't pay and you may need benefits such as Maternity Allowance, State Pension, Contribution ESA and Bereavement benefits then you may not be covered.


https://www.gov.uk/national-insurance/what-national-insurance-is-for

textbook

anmarj wrote: »

NI also count towwards certain benefits, so if you don't pay and you may need benefits such as Maternity Allowance, State Pension, Contribution ESA and Bereavement benefits then you may not be covered.


https://www.gov.uk/national-insurance/what-national-insurance-is-for

It could be worth still paying £10 a month to get your entitlements.