Personal Finance

[Weewom]

If someone stops work to take on self-employed agency/contract work which doesn't materialise should he/she pay self-employed national insurance contributions. They are unable to claim Job Seekers because they voluntarily gave up work. At the end of 28 weeks would they be able to claim any benefit such as income based JSA, or at least ask for credit for NIC on the basis that tried to find work and going self-employed didn't work.

[Buenchico]

If the person's earnings (from self employment) are under £5075 per year the person can apply for a certificate of small earnings exception and not pay any NI contributions.

Even if they don't, their lack of NICs is unlikely to cause a problem. They'll get a letter telling them that they're behind with their contributions, but that letter specifically states that it's not a bill. It simply invites the person to bring their contributions up to date. Since you now only need 30 years of contributions to qualify for the state pension (which, apart from Maternity Benefit and Bereavement Benefit, is normally all that Class 2 contributions count for) a gap in contributions is extremely unlikely to have a detrimental effect.

http://www.hmrc.gov.u...ntro/selfemployed.htm

Chris

[TCL-MUMPING]

The fact that you left a job voluntarily does not mean automatically that JSA will not be paid. You should make a claim and then the circumstances will be investigated during which time the JSA will be paid. If it is decided you did not show what is called just cause for leaving, the JSA can be suspended for a period of up to twenty-six weeks.