I have 2 clients who I have noticed are not paying any Class 2 NI yet their earnings are well above the £5,315 threshold. Is there any other reason as to why they may not be paying this £2.50 a week?
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Reasons for not paying Class 2 NIC
A couple of possible reasons are:
they are also high earning employees and have applied for deferment of Class 2 NICthey appear not to be paying because the system of monthly direct debits or quarterly bills was changed from April 2011 to twice a year payments on 31st January and 31st July, which means that no payments were due from April 2011 to 31st January 2012.
Anyhow, how have you noticed that they are not paying any Class 2 NIC? It is not a business expense and they may well have been paying it privately.
Thanks for your reply - I will check this out with them.
I know it is not a business expense and as such these guys are self employed and do not operate a business account. Therefore their NI would be coming out of the same account as their day to day trading :-)
Actually I know one of them has definitely not deferred payment and as such from April 11 until now they have still not paid any NI therefore meaning that your 2nd suggestion also does not concern them.
I assume I should therefore register them for Class 2 NI, right?
are they over the state retirement age?
How old are these clients? If they are over the state retirement age they are not liable to NI.
They are only 30 and 60 so this does not apply. I wonder if their previous accountant has just not informed them?!
Wow! I wasn't aware I could speak to my clients! Of course I have asked them and neither of them know anything about Class 2 NI
Of course you have asked them?
Well why did you give the impression you hadn't asked them?
So, they don't know anything about NIC class 2? It's over to you then. Get them registered unless there's a reason not to.