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am i paying too much national insurance?

(18 Posts)
unclebumpkin Fri 06-Feb-15 18:40:06

You have to pay national insurance is you're self-employed. You also pay ni payments if you're employed by somebody else. You also get NI payments if you're on jobseekers allowance. Can somebody please explain how this all works? Am I just paying too much national insurance? I am unsure whether to stop being registered as self employed at the moment. Or do you just get the money back somehow? Sorry for my ignorance...

flowery Fri 06-Feb-15 19:09:06

Yes you pay (or can pay) NI in all those situations, but you wouldn't be claiming JSA and employed and self-employed all at the same time, so it shouldn't be an issue.

ItsAllGoingToBeFine Fri 06-Feb-15 19:17:43

unclebumpkin Fri 06-Feb-15 19:20:55

re: flowery, no not all 3. but i have been self employed and on jsa. also been employed and self employed.

unclebumpkin Fri 06-Feb-15 19:35:38

guess it may be worth staying self-employed just in case i can make use of receipts from the past few years just in case things 'work out' this year. guess once you leave self-employed status they become null and void.

ItsAllGoingToBeFine Fri 06-Feb-15 19:37:08

"You’re employed and self-employed
You might be an employee but also do self-employed work. In this case your employer will take care of your Class 1 payments and you have to pay Class 2 and 4 payments for your self-employed work.

How much you pay when employed and self-employed depends on your combined income from all your jobs."

nannynick Fri 06-Feb-15 19:52:18

I am employed and self employed. Do very little self employed work, so I get a NI exemption certificate.

CF10 - Exemption to pay class 2 NI

I would love to know what level of NI you have to be paying to qualify for various things, such as state pension. I have a 40 hour a week job at the moment but what happens if that drops in hours... how will I know when it gets to a level that means I won't pay enough NI and need to stop having the NI exemption on the self employed income?

unclebumpkin Fri 06-Feb-15 20:48:12

that's a good point - i may as well stay self employed and just out of paying the class 2s if I want to...

unclebumpkin Fri 06-Feb-15 21:01:37

advice as to whether to do that? ...

nannynick Fri 06-Feb-15 21:08:59

Are you currently employed and earning over 10k a year (april to april)?

I don't know at what amount it makes sense to not pay Class 2 NI on self employed small earnings. Your income from employed work needs to pay a certain amount so you get the credit towards pension, maternity that sort of thing but I don't know how much you need to be earning.

nannynick Fri 06-Feb-15 21:11:06
Looks like you need to be earning £153 a week from the employed job.

unclebumpkin Sat 07-Feb-15 00:39:05

i imagine i'd either be earning over £153 a week - or i'd be signing on... although when you do sign on, there's sometimes a slight delay, do you lose contributions for that period....

unclebumpkin Sat 07-Feb-15 00:53:10

this stuff makes my head hurt...

i assume the hmrc don't just automatically refund you the money then...

Cinnamoncookie Sat 07-Feb-15 01:06:30

I'm mostly self-employed and occasionally do contact work which has class 1 deducted. I can offset the class 1 I pay in a year against my class 4 liability for that year.

unclebumpkin Sat 07-Feb-15 09:46:58

do i have until april 5th to claim this money back again? i think i get 2 ni class 2 bills and have just paid one that was sent out in early october to be paid end of january. there was another about 6 months before, i believe.

unclebumpkin Sat 07-Feb-15 10:02:51

i had a year a about maybe 7 or 8 years ago when i was on payroll for a company and worked most of that year but there were few months when i wasn't there but was paying NI contributions through the job and earned in that year enough to pay tax... but was also paying NI as a self employed person (and not making much money as doing that all) and i've got records of paying the quarterly class 2 payments but none of getting any automatic refunds...

unclebumpkin Sat 07-Feb-15 14:23:20

says in this article (21st Dec 2014) you can claim back for 3 years... unless the rules have changed very recently... anybody know?

unclebumpkin Sat 07-Feb-15 16:26:23

can you email these people? or is there just no doubt a prohibitively expensive phone line you have to call instead?

i think they close at the weekends anyway.

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