voluntary NI contributions

[hippy-chick]

I became self-employed nearly 5 years ago and was given some bumph about NI contributions.
I signed up for the minimum, which was £2 a week.

but now that I know that I'm always going to be self employed was thinking perhaps I should upgrade to the other one which was about £7 a week.

I'm a real numpty when it comes to things like this. I've already got a huge shortfall of NI from when I was unemployed and then worked casually in a bar.

So how much do you pay?

 

[Sassy Hassy]

I may be wrong here, but when you are self employed you pay that amount (I can´t remember what the class is called) and then when you do your tax return at the end of the year they work out if you owe anymore from your net profit.

However if you think you may have a shortfall which could affect your pension then i would get onto the NI department and ask them what you need to do.

 

[KellyT]

I think it's class 3 for slf employed but not sure! I pay about £2 odd per week for mine it works out from anything like £8.8 to £11 in different months.

HTH

 

[kelly!!]

when i became self employeed i was put on the lower one and iam sure that the other higher one ( class 3) is for when you earn over a certain ammount i think but if unsure give them a call.

 

[oey]

As self employed we pay class 2 contributions and if you earnings go over the specified amount then you should account for class 4 contributions via your annual tax return.

The attached gives you details of the amount of N I earnings amounts:

HM Revenue & Customs: Rates and Allowances - National Insurance Contributions

 

[hippy-chick]

so, whats class 3 for then?

 

[*Garfield*]

class 3 are wholly voluntary contributions you can make if you have an incomplete contributions record (eg, for periods covered by a small earnings exemtion cert), its to protect your entitlement to state pension.hths

 

[marioned]

Remember too, if you are staying at home to look after an under 16 year old, you can claim "home responsibilities" years for the time you take out of work.