Class 2 contributions count towards:
- Incapacity Benefit/Employment and Support Allowance
- Basic State Pension
- Bereavement benefits
- Maternity Allowance
I’m afraid you do have to pay Class 2 NI; despite the fact you are paying Class 1 on your employment income. However, if your profits are deemed to be ‘small’ (currently £5,315), you may be eligible for an exception from paying Class 2 NI.
If you are only liable for Class 2 contributions, you should consider your position carefully before applying for an exception.
If you would like to discuss your personal tax affairs in more detail, please feel free to contact your local TaxAssist Accountant.