Is this right??

lea76

My OH is self employed but only earnt a small amount last tax year so he was exempt from paying NI contributions. I have been out of work since july but didnt bother claiming anything as we were doing ok. however OH had an op in Dec and has been unable to work. We tried to claim IB/IS but cos he hasnt paid enough NI we can only claim IS but they have deducted our WTC off this so we only get an extra £14 pw IS and nothing else they are still processing Council Tax benefit.

I am looking for a job and hubby will be back in work soon but we cant afford to pay mortgage this month!! I thought we would get interested paid on it but apparently that is only when you have been out of work for 39 weeks!!:mad:

How are 2 adults and 2 small children supposed to live of £92 pw and pay bills?? It seems mad we have never claimed anything I have always worked full-time til last July and paid NI and tax, and OH has paid his NI all other years. Is there anything else we could claim for? Seems so unfair:rolleyes:

stazi

It doesn't help you now -but - when your OH returns to work, I suggest he starts to pay his S/E NIC- its only approx £2.50pw. It really is false economy not to pay S/E NIC. When he's able to do so, I also suggest he pays the arrears from the start of his S/E.

Had he paid his S/E NIC, he could have been claiming IB at approx £95pw (WTC is ignored on IB) for you both (no increase paid for kids now).

CIS

stazi is right, a Small Earnings exemption on NI is a false economy. For the sake of £2.50 or so per week it is definitely worth paying as otherwise you lose out on any benefits that require a full NI record over recent years in addition to losing out on State Pension.

lea76

Hi thanks for the replies.

Yes we spoke to Tax office and they suggested we pay the year in question about £130 but cos its classed as paying late they penalise you by not being able to claim for 6 weeks, so its not worth paying to be honest. We will pay it every week from now in just incase. I cant see how people manage to live off benefits!!

seven-day-weekend

I would pay it anyway. It will count towards qualifying for his State Pension and towards qualifying him for IB if he is ill again.

You also should claim Jobseekers' allowance, even if you don't qualify for any payment, for similar reasons.

As for your mortgage, maybe your lender will give you a payment holiday until he is back at work? (Be aware that this will roll up interest).

Gemmzie

How many years is it you need to pay NI for?

Just wondered as my brother (17) is self employed but applied for a small earnings exception for this year.

seven-day-weekend

Your brother (and anyone else retiring after April 6th 2010) will need to pay/be credited with National Insurance for 30 years to get full State Pension.