Q: Both my wife and I work full-time and pay Class 1 National Insurance contributions (NICs) and we own a small residential home and pay Class 4 NICs. We are now asked to pay Class 2 NICS as self-employed people. Is this right?
Aug 17 2005
Answered by: Jackie Jarvis Ask a question
You are being asked to pay as employees (Class 1) and also as self-employed people with a business (Class 2, Class 4). There is nothing unusual in this and you have to pay contributions on your earnings whether you get them 100% as an employee, 100% as a self employed person or a proportion from both.
If your earnings from being employed exceed £30,940 (valid for the tax year 2003/2004) you can defer the payments of your Class 2 and 4 contributions, and if you expect your earnings from self-employment to exceed £30,940, you can defer your Class 1 and 4 contributions.
There is a leaflet CA72 Deferring Payment which you can get from the Contributions Agency. Call 0191 213 5000.
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