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NI Contributions - ILR or Tier 1 General extension

Posted: Sat Jan 19, 2013 5:12 pm
by guy123
Dear All,

Firstly, thank you all for all the valuable guidance you all have been providing over here.

I am planning to apply for ILR soonest possible and noted about the requirement for NI contributions for Tier 1 General route.

Please can anyone help with some guidance on the requirement for paying national insurance for a self employed professional, running a limited company, who usually take minimum salaries and do not contribute NI.

The guidance suggests that those who are self-employed should pay Class 2 NI. Is this mandatory? Are there any workarounds?
Kindly suggest.

Many thanks...

Posted: Sat Jan 19, 2013 6:37 pm
by veera123
As per my understanding, it all depends on how you manage your limited company. I know two different scenarios:

a). Self-employed, where you need to pay Class 2 NI.

b). Director of Limited company and employed by company to manage the day today activities, in this case no need to pay NI unless your salary component is over basic tax exemption.

Posted: Sat Jan 19, 2013 8:07 pm
by techie_09
If you are self employed and operating through your own limited company there is no need to have Class-2 NI contributions.