Can anyone advise!

Nuttycrafter

I am unable to work due to chronic pain and at present I am receiving PIP and I also get my NI contributions paid by DWP.  I do not claim any unemployment or UC from them.
Since becoming ill I've only had employment where it's part time, so there for have not earned enough to pay stamp.  I have several years owing and can only pay 8 years back which comes to just over £4,500, which I am going to do this week.

I make cards and crafts as a hobby and have been asked to create some wedding stationery for several people.  I understand that you can have a £1000 trade off for hobbies and after that you have to let HMRC know.  

As I do not want another large NI bill to fill gaps.  Can any advise me?  I have asked at the job centre, but they just pass me around from person to person and I cannot get any straight forward answers.   

I do not want to be in the position I am now of having to scrimp and safe hard to pay off any unfilled years for my NI stamp.  I will have 29 years paid in full once I pay what I owe and have 6 years to go before retirement age.

Would I be able to pay voluntary NI at a reduced rate if I became a sole trader?  I know I won't be able to afford the standard NI stamp each week.  Or could I just have the £1,000 trade off allowance and still get my stamp paid by DWP.

Apologies if this is confusing.  I know what I want to ask but it's not easy trying to put it down in words.

If anyone has any advice it would be gratefully received.

teaselMay

If you're not able to work why are you not claiming Universal Credit?

You say the DWP is paying your contributions, surely that's the problem solved going forward isn't it? Does that mean also that you have claimed out of work benefit but are not entitled because of savings, and so they're paying credits only?

uknick

I'm not sure you're right saying DWP are paying your national insurance for you.  Nor does PIP attract NI credits toward your state pension.

If you are going to become genuinely self employed then you will be able, with the income you're forecasting, to pay class 2 national insurance at about £3.45 per week, about £180 per year.  This is by far the cheapest way to get your pension credits.  To do this you will have to register with HMRC for self assessment, which is pretty straight forward and then do your annual SA return.  Again, from what you've said, the SA return should be pretty straight forward.

Have look here for what's changing regarding class 2 NI contributions.

Class 2 National Insurance – what’s changing from April 2024? | The Association of Taxation Technicians 

born_again

Nuttycrafter said:

I am unable to work due to chronic pain and at present I am receiving PIP and I also get my NI contributions paid by DWP.  I do not claim any unemployment or UC from them.

If anyone has any advice it would be gratefully received.

Can't answer the employment ones.

What other benefits do you claim?
As PIP does not pay NI credits

https://www.gov.uk/national-insurance-credits/eligibility

sheramber

If DWP are paying  your NI contributions why do you have incomplete years?