Voluntary NI contributions, not voluntary?

[Lady Haha]

Hi, I read a thread on here a while back saying that you don't need to pay these contributions if you are on a low income. I knew that, but was advised at training that it was wise to pay it anyway as you might need it for benefit if ever required. The thread here said that if you have children you are classed as 'at home' and do not need to pay them.

So anyway, I cancelled my contributions and have since received a letter from HMRC asking me when I stopped being self employed as these contributions aren't voluntary!!!!

Any ideas?

[Chatterbox Childcare]

You cannot just cancel it you have to apply for an exemption.

However, I did get told at my last tax inspector talk that if you do not earn enough to pay tax you have until 31st January the following year to claim it all back.

To me this is a good way because you have cover in case you are sick and if you are not claim it back.

If you do not pay it and earn enough to pay tax you will automatically be billed for it.

[Lainey Lou]

Hiya, glad I've spotted this post as I've applied for an exemption certificate due to it being my first year cm and possibly low earnings but then on the back of the exemption certificate it says that if you don't pay contributions you may not be entitled to certain benefits, so was thinking that maybe I should just pay them so then it doesn't backfire on me. So would you say this is best then to pay and then claim back if not earned enough? Thanks for posting this as I forgot all about it!! :) XX

[Chatterbox Childcare]

I would leave the exemption and pay if you can.

[tulip0803]

I paid voluntary payments when I first started although my earnings were low but this meant that when I had DD2 I could claim Maternity Allowance whilst I wasn't working.

[Lady Haha]

thanks Debbie! I will give them a call and find out about the exemption then. Silly me just cancelled the direct debit:rolleyes:

I'm still not sure though, it's only about 11 pound a month, but at the same time that would pay for the monthly piccy upload to Bonusprint!

[saintsue]

Hi Everyone

i dont pay any and have not for 8 years what will i have to do to start paying it now?

thanks alot
luv sue xxxx

[Chatterbox Childcare]

Hi Everyone

i dont pay any and have not for 8 years what will i have to do to start paying it now?

thanks alot
luv sue xxxx

Unless you have an exemption you should be paying it. If you are registered as self employed this should be automatic. I would find out why.

If you make a profit you are automatically charges the full Class 2 amount as well as Class 4 and this can add up. So if you are making money why not pay the low amount and have the benefits available to you?