National Insurance Contributions when Self Employed and Employed

BMilo1

Hi 

My partner set up a part-time business in June 2020 and we're just trying to complete the lengthy self assessment form for the first time! We're both really new at this so please be kind! My partner is a full time employee and pays National Insurance and Tax through PAYE and the profit made from his part time business in 2020/2021 tax year was £2494. There is the option to pay voluntary National Insurance but does he have to pay this if he's paid NI through PAYE?

Many thanks in advance

General_Grant

BMilo1 said:

Hi 

My partner set up a part-time business in June 2020 and we're just trying to complete the lengthy self assessment form for the first time! We're both really new at this so please be kind! My partner is a full time employee and pays National Insurance and Tax through PAYE and the profit made from his part time business in 2020/2021 tax year was £2494. There is the option to pay voluntary National Insurance but does he have to pay this if he's paid NI through PAYE?

Many thanks in advance

No - as voluntary means you can choose to pay or not pay it, then he does not have to pay.

Savvy_Sue

General_Grant said:

BMilo1 said:

Hi 

My partner set up a part-time business in June 2020 and we're just trying to complete the lengthy self assessment form for the first time! We're both really new at this so please be kind! My partner is a full time employee and pays National Insurance and Tax through PAYE and the profit made from his part time business in 2020/2021 tax year was £2494. There is the option to pay voluntary National Insurance but does he have to pay this if he's paid NI through PAYE?

Many thanks in advance

No - as voluntary means you can choose to pay or not pay it, then he does not have to pay.

Not only that, but if he has a full NI record from his PAYE this year, then there's unlikely to be any benefit in doing so. If, as time goes by, he moves to part-time employment and doesn't have a full record, then paying the voluntary contributions may become worthwhile, but you'll get letters inviting you to do so if that's the case.