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Low earnings from self employed and NI credit

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I know a client could voluntarily pay class 2 even if their self employed earnings are below the threshold.  This will ensure no gaps in their NI history.

If they have children and claim child benefit then it seems to be the case that the mother would automatcially receive a NI credit.  Is this correct?

If so then there seems no point in paying the class 2 NI too, unless I am missing something?

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RLI
By lionofludesch
08th Oct 2020 10:03

The child has to be under 12 but you are correct otherwise.

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By GW
08th Oct 2020 10:08

Class 2 NI gives entitlement to State Pension and contributions based benefits such as Maternity Allowance, JSA etc

NI credits for a child under 12 only gives entitlement to state pension

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Replying to GW:
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By djn
08th Oct 2020 10:21

So it's the client call whether the extra benefits of class 2 are worth it I suppose.

I wouldn;t want a client coming back to me and complaining that they had paid class 2 needlessly but then I wouldn't want them complaining they couldn't access JSA for example having not paid it.

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Replying to djn:
RLI
By lionofludesch
08th Oct 2020 10:32

djn wrote:

So it's the client call whether the extra benefits of class 2 are worth it I suppose.

I wouldn;t want a client coming back to me and complaining that they had paid class 2 needlessly but then I wouldn't want them complaining they couldn't access JSA for example having not paid it.

Don't worry. It's the client's call, not yours. It's your job to provide the information. If it goes wrong, it's the client's fault.

I didn't know HRP only covered pension though, so thanks for that.

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By Paul Crowley
08th Oct 2020 10:25

And who is responsible for remembering the child's birthday? ( change of entitlement)

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Replying to Paul Crowley:
RLI
By lionofludesch
08th Oct 2020 10:32

Surely the child will do that.

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Replying to Paul Crowley:
By djn24
08th Oct 2020 10:45

Paul Crowley wrote:

And who is responsible for remembering the child's birthday? ( change of entitlement)


Yes, another thing to have to check every year.
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