Q&A

Class 2 NIC vs. zero hours contract with low income?

Hi, I have a query. As working on 0 hours contract, my salary is not high enough to pay the taxes and stuff. But I am also registered as self-employed. Not having any profit, I still do not exceed the non-taxable yearly amount (finished the uni recently). HMRC sent me a lovely letter that I should pay £95 as Class 2 NIC and that opting out could affect my State Pension and benefits... Can it? I did ask for an exemption in the past, being in a similar situation and did not pay anything. I am considering doing the same now but I also look ahead and as I am getting older I think more about the future. What is your suggestion? Pay or not to pay? Will it not be just thrown away money as it would possibly not affect me anyhow? If I was not registered as self-employed and only did not earn enough to pay taxes, would that also affect my future? How is it different now? I am confused by this dual situation.