Question:
Do I have to pay Class 2 National Insurance contributions if I am both employed and self-employed? I know that if you are self-employed and your earnings are under the small exception then you don't have to pay it, but, for example, if my self-employed earnings are over this and my employed earnings are £20,000 am I liable?
Arthur Weller replies:
If you are both employed and self-employed then you do have to pay Class 1, 2 and 4 NICs. There is, however, a maximum figure above which contributions will be refunded, but this calculation of the annual maximum can be very complicated. Detailed guidance on it can be seen at www.hmrc.gov.uk/manuals/nimmanual/NIM24150.htm.
If contributions for a tax year are expected to exceed the maximum, application should be made to defer payment of contributions, on form CA72B for Class 2 and 4, and on form CA72A for Class 1. A new deferment application needs to be made for each tax year.
