Child benefit NI contributions and Self Employment

cryogenics

I am a stay at home parent, partner brings in around 50k. I receive full NI credits via our child benefit payment which I will get for another few years yet.

My query is; I have this year been making a small amount of money from selling products, which if I keep going, will go over £1,000 by end of 2025-26 tax year. I understand that I need to report this to HMRC but if it is under £6750 (I think) then I do not need to pay any NI contributions. If I register as a sole trader/self employed, will this affect in any way my NI credits from the child benefit we receive? And if it does, am I better to stop selling when I get near the £1,000 just in case NI payments needed are higher than my income?

Sorry if this does make any sense, it is a little confusing to me and even more confusing trying to write it down! Due to a past employer completely messing up the NI payments (or more so not paying them at all) it has left me in a situation where I now need to make sure that every year until I retire is fully credited (mid 40s right now).

molerat

As long as you are receiving child benefit, or a nil £ claim for child benefit, you will receive the relevant NI credit irrespective of any employment or self employment income.

Re the previous employment, were deductions being made from your wages and did you query this with HMRC as I believe you should be credited with those periods even if he employer was not handing over the contributions.

LITRG

Hello, I hope you will find our self employment guide helpful, not just in terms of your question above (see page 28/29) but in also for managing your taxes going forward: https://www.litrg.org.uk/sites/default/files/AST5600.pdf. Thanks 

cryogenics

molerat said:

As long as you are receiving child benefit, or a nil £ claim for child benefit, you will receive the relevant NI credit irrespective of any employment or self employment income.

Re the previous employment, were deductions being made from your wages and did you query this with HMRC as I believe you should be credited with those periods even if he employer was not handing over the contributions.

Thanks for the reply, sounds like I am okay to continue my sales and register as a sole trader without losing any NI credit, thank you.

Re my previous employment, it was in the early 2000's up until 2012-13 or thereabouts. We thought we were paying contributions and I am sure our wage slips even stated that but those are long gone, the company is gone and the owner has passed away I think. So I've basically just wrote that time period off, but thanks for asking.

cryogenics

LITRG said:

Hello, I hope you will find our self employment guide helpful, not just in terms of your question above (see page 28/29) but in also for managing your taxes going forward: **. Thanks 

Thanks for the guide, I will have a good read through it.