NI contributions – pension credits and the small earner.

[Dominique]

Hi,

I am confused as to whether I am getting credits towards my basic state pension or not. A few years ago, I used to - as a parent not in any paid employment – claiming child benefit meant I got credits for my caring responsibilities. Since being self employed as a CM I am not sure. I should pay Class 2 contributions but due to my small CM’ing income, I have a Certificate of Small Earnings and don’t pay Class 2 (never mind Class 4!). Does that leave me with a gap in my NI contributions or does it default to being taken care of by claiming Child Benefit?

I can’t find the answer on the gov.uk website at all but I think there must be other people in the same situation, i.e. very small income, who may just know the answer.

[Simona]

Hi,

I am confused as to whether I am getting credits towards my basic state pension or not. A few years ago, I used to - as a parent not in any paid employment – claiming child benefit meant I got credits for my caring responsibilities. Since being self employed as a CM I am not sure. I should pay Class 2 contributions but due to my small CM’ing income, I have a Certificate of Small Earnings and don’t pay Class 2 (never mind Class 4!). Does that leave me with a gap in my NI contributions or does it default to being taken care of by claiming Child Benefit?

I can’t find the answer on the gov.uk website at all but I think there must be other people in the same situation, i.e. very small income, who may just know the answer.

Please get expert advice on this....it is important you pay your contributions towards your pension...Class 2 is fine
None of us here are experts in this field ...it is better to approach the appropriate pension dept and they will send you info.

Good luck

[Dominique]

Please get expert advice on this....it is important you pay your contributions towards your pension...Class 2 is fine
None of us here are experts in this field ...it is better to approach the appropriate pension dept and they will send you info.

Good luck

Hi Simona. I have asked the NI department for their calculation but it takes several weeks to get an answer...
I thought someone may have come across a similar problem - small earnings! - but it does seem to be too specific.
Thanks for your reply.

[LilMisConfused]

From what I could tell you can choose to pay class 2 even if you don't need to (so opt in to paying it) so that you still get the benefits. I haven't started childminding yet but that is what I am planning to do. Not sure if claiming child benefit would automatically opt you in anyway, but class 2 isn't very much so might be worth opting in just to make sure you are definitely covered.

[Simona]

Hi Simona. I have asked the NI department for their calculation but it takes several weeks to get an answer...
I thought someone may have come across a similar problem - small earnings! - but it does seem to be too specific.
Thanks for your reply.

Yes the reply will take a few weeks but you will get it
Class 2 NI are for self employed like cms...it is very little to pay each month and counts towards your state pension.

Set up a monthly direct debit and that is it...keep paying even if your earnings are low.