Incapacity Benefit / Self employment & NI confusion

RoxyK

I've been signed off by my doctor for the last 6 months and am only entitled to a NI credit per week via IB as I didn't pay enough contributions in my previous p/t role, and as we have savings can't claim it via income support.

I was told the NI credits don't count towards any future benefits but do count towards a pension so currently the only benefit I get is towards my pension.

As I'm now slowly getting better I'm able to do some mystery shopping on the internet for a few pounds here and there. Am I right in thinking I would be better off registering as self employed and to start paying class 2 contributions myself rather than continue with weekly IB NI credits?

If I have this right the class 2 contributions will count towards any future benefits. I know I won't earn enough and could ask for a small earnings exemption, but then I wouldn't build up any NI contributions.

I also read that you can claim NI credits for any weeks you are self-employed that you are unable to work - would these credits be the same ones I'm getting now that only contribute towards a pension? And if so would I better just carrying on paying class 2.

Another option is to ask my benefits office if the mystery shopping can be classed as permitted work. But again, I think I still would miss out on building up future benefit entitlements.

I'd love some confirmation that what I'm thinking is correct & the best option for me.

Sorry for the longwinded post, but I just want to make sure I'm doing the right thing before I do anything official. I did try ringing the newly self employed helpline but they were no help........

Many thanks

calleyw

Found this

Do Class 2 contributions count towards benefit Class 2 National Insurance contributions give entitlement to a range of contributory benefits

• Incapacity Benefit
• Maternity Allowance
• Basic State Pension
• Bereavement Benefits
  • Widowed Parent's Allowance
  • Bereavement Allowance
  • Bereavement Payment

Does not count towards JSA.

Yours


Calley

stazi

NI credits DO help towards future benefit entitlement to IB/JSA/SP/BB as mentioned in post#2- except MA. However, depending on which benefit is claimed, to satisfy the relevant benefit contribution conditon, some contributions, either Class1, 2, or 3 must be PAID.

Starting to pay the Class 2 NIC will start to build up your NI records for future benefits, whereas remaining on IB credits will not, now that you are feeling better.

RoxyK

Thanks so much for the responses! They're really appreciated and I will go self employed & start paying Class 2 NIC now I understand the IB credits aren't worth staying on. It will be great to be earn something, now matter how much

Thanks again,