Self Employed and Freelance workers...... PLEASE READ

snaver

Question: What's the difference between 2 and 3? Answer: 640.

Yes, the difference between the annual payments for Class 2 and 3 National Insurance contributions is £640… £160 for Class 2 and £800 for Class 3.

In order to pay Class 2 contributions, you need to be registered as self employed for National Insurance purposes, IN ADDITION to being registered for tax purposes, and this doesn't happen automatically, even if, like me, you've been registered as self employed for tax with HMRC for decades.

I only found out that I had to register separately last year and, had I been made aware of the situation before, I would have registered years ago and saved a lot of money.

It is therefore well worth your while to check your own status, and register, if necessary, by calling the Future Pensions Department on 0800 731 0175. Class 2 contributions can be backdated for 7 years and you can appeal further back, though, in my experience, it has led to nothing but stress and frustration.

Good luck!

Bostonerimus1

Yes, definitely check on your NI contributions and status. This is particularly important for people working overseas as soon they won't be able to make voluntary Class 2 contributions and will have to pay the more expensive Class 3.

snaver

https://forums.moneysavingexpert.com/discussion/comment/81986586#Comment_81986586

A very good point, thank you for raising it.