Low profit, class 2 ni?

[Cindy34]

How do you know if you should apply for an exemption to class 2 ni?

Profits estimated to be below 5725 but what happens if it does go above? Should exemption be applied for asap or wait till year end to see what profits actually are?

Already have PAYE job so paying class 1 ni at above lower earnings limit but under upper earnings limit.

Hi Cindy, I encourage all my clients to apply for it if their profits are likely to be under so that they dont have to go through the process of getting it refunded when their actuals profits do come in under 5725.

Once your profits go above 5725, then yes you become liable for it and need to contact HMRC to get the class 2 exemption lifted and start paying it

agree with kylie

Thanks.