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Contractor set up as sole trader - contract has ended - should/can he sign on to keep up his national insurance contributions?

3 replies

OnIlkelyMoorBahtat · 02/06/2014 10:57

Hi there

Am posting on behalf of a friend. Last year he was made redundant, so he went down the contractor route: he started contracting for a firm and as with so many organizations who use contractors, he had to set himself up as a company, drawing dividends, etc., rather than paying himself a salary, etc., etc.

His contract has now ended slightly earlier than he thought it would (he's fine with this, he understands it's the nature of contracting): my question is this, whilst he is looking for new work, should/can he sign on - he is not looking for benefits (he has savings) but wants to know if he should be doing this to keep up his NI contributions, or does the fact that he is technically a company bar him from doing this? And is someone in this situation is actually entitled to say income support, rather than JSA, or what have you? As ever, the guidance on the DWP website is "opaque" to say the least!

Any thoughts welcome!

OP posts:
Ellypoo · 02/06/2014 12:30

I think that as a self-employed person, it's really hard to get JSA or anything like that. NI contributions could be paid 6 monthly though, he needs to have a look on the HMRC website as he could possibly change the type of NI contributions he pays.

Onesleeptillwembley · 02/06/2014 12:37

If its as you say then he wouldn't have been a sole trader.

OnIlkelyMoorBahtat · 02/06/2014 13:48

Thanks, I'll suggest HMRC's website to him - as I said, he's not looking to receive anything while he's not working, it's just unclear if he needs to be signing on to continue his "stamp" (dating myself there!).

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