HMRC

[RegTheMonkey]

I don't know if this I the right place for this query - if not, could someone point me in the right direction please? I have been self-employed since last August, but am now looking for full-time jobs with employers as my little business has not taken off. Someone advised me to apply online with HMRC for the NI exemption because of low income from self-employment (practically nil!) so that I don't have to pay NI. I've still not done that but will do. However, my question is - what if I get a job offer? I would then go on PAYE and the employer would pay my NI. How does that work if I already have an Exemption in place? Or will it all work out automatically and am I stressing about nothing? Thanks.

There are different classes of National Insurance; Self employed people pay Class 2 (regular weekly amounts) and Class 4 (based on profit). Employees pay Class 1.

You can apply for an exemption from Class 2 NICs if you have low earnings from your self employment. If you then become employed, your employer will deduct your Class1 NICs from your pay.

Thank you offline. So I just get the exemption and then if I get a job it will all happen automatically - ie the change to Class 1?

If you stop your self employed business, you will need to let HMRC know, but with regards to Class 1, your new employer will sort it out when they set up your PAYE, you shouldn't have to do anything.

Thank you very much!