A question about NI contriutions.

[GarfieldsGirl]

I've just registered as self employed. I asked about NI contributions if I don't earn very much, was told that I can apply for exemption below £4,000ish, but that means I won't be entitled to any benefits.

Surely he's got that wrong?

Self employed contributions are only £2.10 per week, so I'd pay them to be on the safe side. In fact, I do: I am technically self-employed but I haven't actually done any self-employed work for a couple of years as I have young children and am SAHM. I decided to keep paying the contributions for continuity.

Sorry, don't know about the benefits aspect, but, tbh, I wouldn't be surprised!

Hi - its certainly an issue for maternity allowance. If you are self employed and paying class 2 NI contributions (just over £2 a week) you are entitled to full maternity allowance which you don't get if you have a low earnings exemption.

I imagine that the situation is similar for other contributory benefits, but I'm not sure.

Thanks for your replies.

Also, I thought if you get Child Benefit, your NI is paid for you.

OK, so now I'm going to be pedantic. Employees who earn less than £68(?) don't pay NI. Does that mean they are not entitled to benefits either?

I agree with millie 365 - if you pay the Ni contributions you will be eligible for maternity allowance at £108 per week. I would suggest strongly that you pay the National insurance! I am self employed too and getting the full allowance was great. Sometimes people only get a reduced amount if they haven't made enough contributions. I asked for a pensions forecast from the NI office which detailed all my contributions and any missing years. good luck!

I was told your contributions are paid if you get child benefit and/or working tax credit - is this right or wrong I wonder??!

HRP read tis Blossomsmine

If you get Child Benefit then you get Home Responsibilites Protection which basically means you get credit for your pension.

Not paying NI means you have no entitlement to Maternity Allowance, Jobseekers Benefits etc.

You can get income support but that is means tested and if your partner works you won't get it.

When I left uni I hadn't paid enough NI as I earnt less than the Lower Earnings Level in my part-time job so just got Income Support of £30 a week to live on as a single person.

Thanks itoa - so you don't actually need to claim then if you are getting child benefit, they automatically do that, have I got that right. Sorry for seeming dumb but I find this sort of thing so confusing.