National Insurance on Self-assesment, PAYE and Self-employed
Discussion
Last year I had 2 periods of employment with different companies (April-Sept and Jan-March), and 3 months self-employed in the middle (Oct-Dec). No umbrella companies or anything clever.
I have used an accountant to file my tax return, and then logged in to the SA portal and seen that the HMRC tax calc is £1600 more than the accountant's.
Spoke to HMRC - usual 'no errors' conversation, we'll send you the tax calc (because it couldn't be seen in the portal).
Tax calc arrives, clearly the difference is in National Insurance contributions. I am paying the lower rate for NIC due to my employment paying more than the Upper Earnings Limit. The self-employed period did not achieve the Upper Profits Limit, so all NIC in that time are charged at the higher rate.
My accountant says because I've reached the UEL for employment, my NIC for the self employed period should also be charged at the lower rate.
Anyone willing to confirm for me please, before I call up HMRC again? Thanks!
I have used an accountant to file my tax return, and then logged in to the SA portal and seen that the HMRC tax calc is £1600 more than the accountant's.
Spoke to HMRC - usual 'no errors' conversation, we'll send you the tax calc (because it couldn't be seen in the portal).
Tax calc arrives, clearly the difference is in National Insurance contributions. I am paying the lower rate for NIC due to my employment paying more than the Upper Earnings Limit. The self-employed period did not achieve the Upper Profits Limit, so all NIC in that time are charged at the higher rate.
My accountant says because I've reached the UEL for employment, my NIC for the self employed period should also be charged at the lower rate.
Anyone willing to confirm for me please, before I call up HMRC again? Thanks!
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