Hi
I have a friend who setup as self employed back in July 2013 and has registered with HMRC, however before submitting her self-assessment she wants to see if she can claim small earnings exemption on her Class 2 NIC as the profit in the 13/14 tax year was below the limit.
This year she expects it to be over, from what I can see she can only claim exemption for last year if this year is also expected to be below? Is she able to get a backdated exemption for the last tax year?
Thanks
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Refund?
Exception, if required, can be backdated to the previous year so long as no contributions have been paid. If they have been paid, you should apply for a refund not exception.
Contributions may be counting towards state pension entitlement so perhaps your friend first needs to check the number of qualifying years they have.
Small Earnings Exemption
Thanks for the above, looking on HMRC it only appears you can apply for the small earnings exemption if profits were below the level last year and are expected to this year?
Last tax year the profits were below but are expected to above this year.
Does this mean she needs to pay the Class 2 from date she started self-employment?
Thanks