ESA AND NI CONTRIBTIONS

Tonawanda17

Hi. i am on cont based esa and do permitted work. I have done so for many years and i really enjoy it. I am self employed and my question is do i need to pay class 2 NI contributions? I have not done so since i started working. I notice my PW1 forms state that even if i do permitted work this has no effect on my entitlment to NI Credits. I guess i am still getting credits as i am still on CB ESA.

Thanks

poppy123456

You will be receiving class 1 NI credits while claiming ESA.

Tonawanda17

Thanks poppy. I contacted the national insurance helpline last year and asked them if i should be paying Cat 2 NI for the self employed and even they said they weren't sure. It Fills me with dread when even the experts aren't sure.

Thanks again

Tonawanda17

Thanks. My concern was that when i got to pension age it would effect the state pension as i hadn't paid class 2 self employed contributions while i was working. Thanks again

poppy123456

Class 1 from ESA count towards your state pension. Providing you have earned more than the permitted work maximum amount then there shouldn’t be an issue.