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Hi,
I currently work in a Full Time Accounts position and I am just about to venture in going Self-employed as an addition to my main employment; as a side line.
Now, will I be required to pay Class 2 NIC of £2.50 per week straight away, even though I have not yet got any clients, nor advertised etc etc. Or is the £5315.00 lower limit based on just the Self-employed earnings?
Any advice would be much appreciated.
Kind regards
Kerry
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I found this, so perhaps I have found the answer to my question!;
When you can apply to defer Class 2 National Insurance contributions
You may be able to defer your Class 2 National Insurance contributions if you expect to pay:
- both Class 1 and Class 2 contributions in a tax year
- Class 1 contributions on weekly employment earnings of at least £817 for the whole tax year (2011-12 rate)
However, If there are any experts out there, or people that have been or are in the same boat, it would be great to hear your experience of this.
Thanks again
Kerry
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Hi,
Just want to bump this, as I could really do with some advice from any knowledgeable person out there, before I have to spend ages on the phone to HMRC! Surely many of you have been in the same position 
The part I 'Copied and Paste' said 'to defer', so I do need some help with this!
Thanks
Kerry
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- Member PM.Dip
- Practice Licence
- 44 posts
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Hi Kerry
As I understand it, if you are already paying sufficient NI through employment then you can get an excemption from class 2 NI. One of my clients is employed full time and is also a sole trader and he was given an excemption. However, I am certainly no expert on the matter (although my client managed to sort it out when he first registered as self employed - so it must be a something the HMRC deals with easily).
I suggest that when you phone the newly self employed helpline (0845 915 4515) to first register as self employed you explain your NI status (ie you already pay through employment) and see what they advice. Registration for class 2 national insurance can be sorted out with your registration as a sole trader, so don't panic about it. If you don't get the advice that you need when you register as a sole trader then you can always phone the NI helpline (0845 915 4655) but I warn you this can involve being on hold for half an hour - but they are very helpful when you get through.
Basically, once your self employment starts phone the newly self employed helpline (0845 915 4515).
Again, I have a client who pays his NI through employment, and he is not required to pay and Class 2 NI as a sole trader.
Hope this helps
Lucy
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- Member PM.Dip
- Practice Licence
- 35 posts
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Hi Kerry
If you look at form CF10 (which is the application for exemption from Class 2 NI), the explanatory notes explain when you can apply.
Basically the threshold is "earnings from self-employment", so in your situation you are eligible to apply until your self employed earnings exceed the threshold.
HTH
Helen
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Thanks Lucy & Helen,
That's perfect. Exactly what I was hoping! I will get the form downloaded (assuming that's what I do).
It's a mine field when your first starting out, not knowing what forms are needed etc.
Thanks again, Kind regards,
Kerry
(think I may email Kris to see if he got that starter pack together  )
Edited at 07 Mar 2012 09:51 AM GMT
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Hi Kerry
Below is the link to for cf10 which will explain all the circumstances you can exempt from class 2 NI.
www.hmrc.gov.uk/forms/cf10.pdf
The £5,315 is the current threshold related to self employed earning only so if you self employed earning do not exceed this threshold you would be able to apply for a certificate of exemption.
These Certificates tend run out in April so you will probably have to reapply in a months time for the next tax year.
I hope this helps
Kind regards
Stuart
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Thanks for this Stuart,
I have set my insurance to start from 10th and sent the Practice Licence application yesterday, so fingers crossed that it will be accepted then I will get the ball rolling! Exciting, but very nervous. times!
Thanks again.
Regards
Kerry
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Hi there I am self employed and work for a company as well and I have been told I have to pay National Insurance twice so am thinking of going to the company I work for to work on a self employed basis from the new financial year. Trish.
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Dear all
I too found this really annoying I was paying Class 1, 2 and 4 NI when I was workign full time and self employed.
The worst of it is class 2 NI was designed to ensure the self employed paid enough NI to qualify for benefits and pensions etc which I was doing automatically paying my class 1 NI.
Kind regards
Stuart
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My hubby pays 1,2 and 4. Part-time S/E plumber and part-time retained firefighter. I say part-time, he's actually on call for 120 per week!! But he is paying through the nose for NI. It's a pants situation really.
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- Member PM.Dip
- Practice Licence
- 97 posts
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When I called HMRC to register as self employed, the person on the other end of the phone asked if I was currently employed, I said yes, then she asked if full time, again yes. Finally she asked if I was oging to be changing to self employed only - no, only working part time self employed. Then she said okay, we will just send you a self assessment at the end of the tax year, we don't need to register you for Class 2 NIC.
This was in October last year.
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