Wife and I have set up our own business although we are both otherwise employed as well.
Am I right in saying that we'd both have to pay a set rate (£2.40 a week?) of class 2 NICs as well because of self-employment? Regardless of how much profit we make or are we exempt if we make less than £5K?
In this case, would it be better for just one of us to declare ourselves self-employed as a sole trader rather than a partnership so that only one set of class 2 NICs is paid?
If your (separate) earnings are below 5075 (in 2009-10) you do not have to pay Class 2 NICs. You need to elect for this "small earnings exception". See eg
Depends among other things on whether each of you earn enough from your employment to accrue state pension entitlement. Class 2 NICs are a cheap way of doing that - at least, cheaper than volunteering to pay Class 3.
Note also that if you pay enough NICs from your employment you can apply to defer the Class 2 NICs even if you are above the small earnings limit. See eg
Yes. We would both pay enough NI from our day jobs to accrue pension entitlement.
I didnt realise you could choose not to pay class 2 NICs?
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