Nat ins contributions question

[Seahorse]

Ive been unemployed for 2+ years, self employed for about 4 years.I have class 4 exemption(that may not be what its called exactly but I cant recall proper name)
My dads just been looking at NI contributions and says its as little as £2.50 a week.
Is this right?Do any of you pay it?Any comments/adviced appreciated.Id much rather hear from a person than read it on a site.

[Happywrap]

Hi, yes it is class 2 contributions and it's £2.50 per week. You can either pay by Direct Debit or they can just send you a bill, I think it's once every 6 months. If you don't earn enough I believe you can opt out but you may choose to pay so that you keep your NI contributions up for pension etc. later.

It tells you more here, if you scroll down you'll get to the bit about self employed, class 2 etc.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/NationalInsurance/IntroductiontoNationalInsurance/DG_190048

[AliCat]

Yep, your Dad is right - Class 2 NI contributions (which are for self employed persons) are £2.50 per week and these are now paid twice a year - once in October and once in April (this has recently changed from quarterly payments). If you choose to pay by direct debit, you can opt to pay monthly or six-monthly. Even though I don't earn enough, I still pay my NIC as it helps in the future re: pensions, etc. and I can afford to pay £2.50 per week.

Hope this helps.

[Angi]

I just got my first NI class 2 conts bill yesterday for the period April - October which equates to £2.50 a week. I have to pay this even though I also pay conts through my full-time occupation too.

[Seahorse]

Great replies, thank you so much.

[craftdancer]

I just got my first NI class 2 conts bill yesterday for the period April - October which equates to £2.50 a week. I have to pay this even though I also pay conts through my full-time occupation too.

I'm not sure that you do have to pay class 2 conts if you're paying class 1 - I've recently received an exemption certificate for which I applied on the grounds that I am paying class 1 employee contributions from my employment. I do, however, already have far more contributions in years than those required to receive a full pension. It might be worth checking out whether you need to pay Class 2 or not.

Sorry for any typos - this bottle of wine is particularly good! :)

Linda

[MornieG Jewellery]

If you pay class one you can opt out of class 2 as Linda said. I had an exemption certificate and now even though I have also finished with my full time job as I have more than 30 years contributions I don't have to pay any more. If you are not sure you have enough contributions to claim full benifits you can ask for an assessment which is free.

Mo.XX

[Angi]

Thanks guys - i'll contact the HMRC and see what they say - I'm only 34, although I'm on a pretty decent wage with my full time job as am a QS, but dont think i will have amassed enough conts. Will definately check though

[quiltaholic]

Voluntary contributions are not excessive and they at least contribute towards your pension. You may not think this is important now but you will when it's too late.
If you go put 'NI class 4 contributions' into a search engine it will take you to a list including the HMRC site. There it tells you what you should pay.
If that doesn't apply you could pay voluntary contributions which were about £30 per month when I paid a couple of years ago.
You could ring up and ask. They are actually very helpful.
It would be best to get the facts from the 'horse's mouth' so to speak then you won't get caught out.