NI Contributions
Discussion
Hello all,
I would be grateful if anyone out there could advise me on National Insurance contributions.
I am currently employed and pay Tax and NI at source.
I also have my own small internet business for which i'm registered with the Inland Revenue.
My question is, do i have to pay NI contributions for myself with regard to my own business in addition to my contributions from my employed position?
I have tried the Inland Revenue/Customs but they seem to give conflicting advice depending on who you talk to.
Thanks.
I would be grateful if anyone out there could advise me on National Insurance contributions.
I am currently employed and pay Tax and NI at source.
I also have my own small internet business for which i'm registered with the Inland Revenue.
My question is, do i have to pay NI contributions for myself with regard to my own business in addition to my contributions from my employed position?
I have tried the Inland Revenue/Customs but they seem to give conflicting advice depending on who you talk to.
Thanks.
The normal assumption is that individuals who are Self Employed pay National Insurance on their Self Employed earnings.
The Self Employed pay two types of National Insurance - Class 1 and Class 4.
Class 1 is paid frequently - usually once a month or once a quarter. It is quite a low amount. For 2006/07 the figure is £2.10 per week. That works out at £8.40 or £10.50 per month - depnding on how many Fridays there are in the month.
If your Self Employed earnings are going to be less than £4,465 for 2006/07, you can apply for exemption from paying the Class 1 NI contribution.
Alternatively, if you pay the maximum Class 1 NI as an employee (i.e. your Gross Salary for 2006/07 exceeds £33,540), then you do not need to make Class 2 contributions either.
Clas 4 NI is paid as part of the Self Assessment tax liability amounts. It is calculated at 8% of your taxable profits from Self Employment between £5,035 and £33,540 and 1% on everything above £33,540.
Hope that helps.
The Self Employed pay two types of National Insurance - Class 1 and Class 4.
Class 1 is paid frequently - usually once a month or once a quarter. It is quite a low amount. For 2006/07 the figure is £2.10 per week. That works out at £8.40 or £10.50 per month - depnding on how many Fridays there are in the month.
If your Self Employed earnings are going to be less than £4,465 for 2006/07, you can apply for exemption from paying the Class 1 NI contribution.
Alternatively, if you pay the maximum Class 1 NI as an employee (i.e. your Gross Salary for 2006/07 exceeds £33,540), then you do not need to make Class 2 contributions either.
Clas 4 NI is paid as part of the Self Assessment tax liability amounts. It is calculated at 8% of your taxable profits from Self Employment between £5,035 and £33,540 and 1% on everything above £33,540.
Hope that helps.
Edited by Eric Mc on Monday 19th March 16:25
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