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what is I stop paying my class 2 nics?

5 replies

taxquestion · 01/08/2014 12:04

i've pasted this bit from the hmrc website and it explains what happens if i fill in the appropriate form and stop paying my class 2 nic contributions? but what happens if i stop being self employed as well - and fill in whatever form that is required to do that? what happens? would i still risk losing the same entitlements and would be essentially be a bad thing?

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You may not have to pay Class 2 National Insurance contributions (NICs) if your earnings, money left after expenses:

were less than £5,725 for the period from 6 April 2013 to 5 April 2014 and/or
are expected to be less than £5,885 in the period 6 April 2014 to 5 April 2015
Please note: If you don't pay Class 2 NICs or you apply for, and receive, a Certificate of Small Earnings Exception (SEE) you may lose entitlement to the benefits below:

Employment and Support Allowance
basic State Pension
bereavement benefits
Maternity Allowance

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OP posts:
taxquestion · 01/08/2014 12:05

i'm not sure if i've posted in the right bit of mumsnet - hope so (?)

OP posts:
HygieneFreak · 01/08/2014 12:10

What it means is that paying NI whether its salary or voluntary based entitles you to:

A full state pension (i think its 30 years worth of NI)

Full maternity allowance which is £135 a week. If you havent paid NI for so many months before you claim for maternity pay.

Same with any other benefits you may need to claim in the future.

I think its always best to pay NI

taxquestion · 01/08/2014 12:17

so if you're not claiming benefits but not earning and not paying these, you may get less of these entitlements...

OP posts:
taxquestion · 01/08/2014 13:34

I think its always best to pay NI

okay.

OP posts:
HygieneFreak · 01/08/2014 21:27

Yes you would get less entitlements, or you may not get them at all.

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