Self employed people pay Class 2 National Insurance contributions throughout the year, in addition to the class 4 contributions at the year-end.
A common question people ask is what benefits do their Class 2 contributions count towards.
They do count towards:
– The basic State Pension
– Maternity Allowance
– Bereavement Benefit
However, they DO NOT count towards:
– The additional State Pension
– Statutory Sick Pay
– Jobseeker’s Allowance
– Employment Support Allowance
Therefore it is important to take financial advice in addition to tax advice, to ensure that you are covered for the future.
If you would like a referral to a financial adviser please do contact me, as I work closely with a locally based adviser.