Do you have National Insurance to pay 31 Jan 2014?

HMRC currently collect class 2 national insurance in arrears, next payment date is 31 January 2015. You only have to make these contributions if your self employed taxable income has exceeded these thresholds:- 5 April 2015 £5885


5 April 2014 £5725

5 April 2013 £5595

Loosely speaking, deduct your allowable business expenses from your business turnover and this will be your taxable income figure.

There is a time limit for claiming back overpaid class 2 national insurance payments. HMRC will want a form CF10 completed for this kinda claim.

Class 2 national insurance is payable for the self employed and goes towards your state pension. You must make 30 years of payments to qualify for the entitlement to a full state pension.

Pension credit is available for those who don't fulfil the above criteria. Also non payment of class 2 can effect your benefits entitlement to say maternity allowance or signing on.

Note - you must also pay class 4 national insurance when you are self employed, this is like a second 'tax' and is calculated when your tax return is completed.

For the current rates for class 2

You can pay your class 2 national insurance by direct debit, you will need a form called CA5601.

To find out if you have made enough class 2 contributions for a state pension contact the DWP and ask for a pension forecaste (even employed people can request this information!)

Just before Christmas I reduced my clients national insurance bill from £280 to £10.80 - we checked her benefit entitlement first as she was on maternity leave.

PS - HMRC will be collecting non payment of class 2 through PAYE from April 2014, so it's worth reviewing your account before this date. It will mean that your tax free allowance will be reduced to adjust for the monies owed.


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