Class 2 NIC - Tier 1 VISA Extension

[ukiran]

Hi All,

I am new member to this board and got registered today itself.

I have my Tier 1 VISA Extension due for renewal next month. I have my appointment booked on April 12th.

For the Previous Earnings section:
1. I am both a salaried and self employed.
2. I have registered for my self-employment in the month of October 2011 which is after 8th of October.
3. When I spoke to HMRC after that for the class 2 NIC, they informed that I shall receive the NIC deduction workings only in the month of April 2012 and I need not pay anything until then.
4. After going through the forum and the posts, it seems we need to make the payment for class 2 NIC deductions on a monthly basis.
5. Now I am bit worried as to how to deal with this. After having spoken to my accountant he has informed me that he shall provide me a letter about the same. I have also requested HMRC to provide me some kind of documents which states that class 2 NIC can be paid once you receive the statement.

Has any one come across situation like this? I need a help in dealing with this matter and/or is there any alternative?

thank you all.

[shahjee11]

Its not necessary to pay NIC on monthly basis. You can pay it whenever the bill is sent to you. HO want to make sure that your self emplyment is established as per Hmrc rules. Evidence to prove this can be either your class 2 Nic bill or can also be a welcome pack/letter issued to you by hmrc at the time of registration. Its all in the policy guidance so better take some time and read through it.

Note: guidance talks about quarterly nic bill but hmrc have now changed it to 6 monthly bills. this part of the guidance is not very up to date.

[ukiran]

Hi Shahjee...

Thank you for your reply!

I have the welcome letter received from HMRC for my self-employment registration. I shall submit the same along with the accountant letter.

[benneviss]

You must pay your NIC , you can pay monthly, quatarly or annually .

[AccountantMatthew]

The payment procedure for Class 2 NI did change a little in April last year. As a bit of background reading for anyone on this thread, this section and the one below it is worth a look:

http://www.hmrc.gov.uk/payinghmrc/class2nics.htm#13

[ukiran]

I have already spoken to my accountant who has agreed to give me a letter which clearly states that NIC can be paid after receiving the statement.

Thank you all for your views.