Tax Credits Nat Ins Credit Low Income?

POPPYOSCAR

Someone has asked me if I know the answer but I do not so I thought I would ask on here.

If someone is self-employed and receiving working tax credits do they get their Nat Ins. Class 2 credited if they are on a low income?

Darksparkle

No https://www.gov.uk/national-insurance-credits/eligibility

POPPYOSCAR

Yes I did read that but was still unsure.

It mentions class 1 and class 3 but I could not see class 2.

pmlindyloo

POPPYOSCAR wrote: »

Yes I did read that but was still unsure.

It mentions class 1 and class 3 but I could not see class 2.

According to Darksparkle's link your neighbour would get class 3 credits if receiving WTC, no disability premium and has a small earnings exemption certificate.

Class 3 go towards the state pension.

Class 2 NI contributions are not automatically paid with self assessment if you have a small earnings certificate but you can pay them voluntarily if you wish by contacting HMRC.

This link may help.

https://www.litrg.org.uk/tax-guides/tax-basics/what-national-insurance

Is there any reason your neighbour needs class 2 NI contributions?

Darksparkle

As per the bottom of the page -

Who can’t get credits
You can’t usually get credits if you’re:

a married woman paying reduced rate National Insurance
self-employed and need to pay Class 2 National Insurance

POPPYOSCAR

pmlindyloo wrote: »

According to Darksparkle's link your neighbour would get class 3 credits if receiving WTC, no disability premium and has a small earnings exemption certificate.

Class 3 go towards the state pension.

Class 2 NI contributions are not automatically paid with self assessment if you have a small earnings certificate but you can pay them voluntarily if you wish by contacting HMRC.

This link may help.

https://www.litrg.org.uk/tax-guides/tax-basics/what-national-insurance

Is there any reason your neighbour needs class 2 NI contributions?

She has just completed her SA online and it asks her if she wants to pay Class 2 voluntary contributions I think it was about £140.

She seems to think that as she gets working tax credits it might be credited to her nat.ins account.

She has tried to contact HMRC and not been able to get through.

I think she said it had to be paid by 31st jan 2018.

She wants to make sure she has enough for state pension.

Would she be able to pay it as a catch up next year if need be?

POPPYOSCAR

Darksparkle wrote: »

As per the bottom of the page -

Who can’t get credits
You can’t usually get credits if you’re:

a married woman paying reduced rate National Insurance
self-employed and need to pay Class 2 National Insurance

yes I did read that and clicked on the link but did not really understand what it meant by need to pay class 2.

She is exempt because of low earnings and so it would be a voluntary payment if not covered by tax credits.

But it looks like there is no need to pay these as WTC will pay the class 3 and that will cover the state pension year.

Darksparkle

You never mentioned she was exempt in OP. Would have helped.