Class 2 N.I. for employed + self employed

by **BlueSheep** on Mon Jan 10, 2011 12:04 am

Hi All

I am working as employed as well as self emplyed. Every month my National Insurance is deducted from my employment. Do I also need to pay Class 2 NI required for self employed professionals?

Regards

by **pawncob** on Mon Jan 10, 2011 11:00 pm

Yes.

see:http://www.hmrc.gov.uk/startingup/

by **BlueSheep** on Fri Jan 21, 2011 2:55 pm

I am running my own limited company, as well as I am employed.I have been told by an accountant that I do not have to pay 2nd class N.I.
Can any body confirm this?

Kind regards

by **RAL** on Fri Jan 21, 2011 3:58 pm

If you set up a limited company, then you do not need to pay NIC Class 2. This applies to self employed people.

by **pawncob** on Fri Jan 21, 2011 6:22 pm

Yes you must pay Class 2 as you're self employed, but you may get a refund if your total NICs (Class 1 and 2)exceed the maximum.

by **RAL** on Sat Jan 22, 2011 10:33 am

Bluesheep

Are you self employed?

You also mentioned that you are running limited company?

Can you clarify?

by **BlueSheep** on Sat Jan 22, 2011 11:42 pm

Hi All

Yes I am running my own limited company. My understading is even if I run my limited company even then I consider as self employed.

It appears from the above discussion that owners of limited company are not considered as self employed?

Please also asnswer my original query of 2nd Class N.I. Do I have to pay this?

Regards

by **RAL** on Sun Jan 23, 2011 12:01 am

If you are trading through the limited company then you are not self employed, but you are an employee of the company. As an employee you do not need to pay Class2 NI.

Class2 Ni applies to self employed people.