Ask the Accountant

“Q. I’m self employed with low profits, should I pay Class 2 National Insurance (NI)?

A. Whilst it may seem tempting not to pay NI due to your low profits, we would always recommend paying your Class 2 contributions.

If you don’t pay Class 2 contributions, you may end up with gaps in your NI record.

Other reasons as to why you may have gaps in your record include:

– you were employed but had low earnings- you were unemployed and were not claiming benefits

– you were living or working outside the UK

Gaps in your NI record can mean you will not have enough years of National Insurance contributions to either:

– get the full State Pension (sometimes called ‘qualifying years’)

– qualify for some benefits

You can either call HMRC or register with their service online to check your contributions as they stand today.

Alternatively, if you’re a current client, you can contact us to check on your behalf”.