Self Employed NI Contributions
Discussion
Help!
Started a business about 6 months ago. I have received a letter from HMRC for NI Contributions for self Employed.
Although the business runs 6 days per week, I am only working on it on weekends. The business is currently running at a loss and therefore I am not taking a penny out of it.
Why do I have to pay these? I also pay NI Contributions in my main weekday job. My job pays me approx the turnover of my business so I pay far my NI each month than they are asking.
If I explain this to them can i not pay these contributions? I have changed jobs since my business started up so they know that I am working.
Cheers
Tim.
Started a business about 6 months ago. I have received a letter from HMRC for NI Contributions for self Employed.
Although the business runs 6 days per week, I am only working on it on weekends. The business is currently running at a loss and therefore I am not taking a penny out of it.
Why do I have to pay these? I also pay NI Contributions in my main weekday job. My job pays me approx the turnover of my business so I pay far my NI each month than they are asking.
If I explain this to them can i not pay these contributions? I have changed jobs since my business started up so they know that I am working.
Cheers
Tim.
tim2100 said:
Help!
Started a business about 6 months ago. I have received a letter from HMRC for NI Contributions for self Employed.
Although the business runs 6 days per week, I am only working on it on weekends. The business is currently running at a loss and therefore I am not taking a penny out of it.
Why do I have to pay these? I also pay NI Contributions in my main weekday job. My job pays me approx the turnover of my business so I pay far my NI each month than they are asking.
If I explain this to them can i not pay these contributions? I have changed jobs since my business started up so they know that I am working.
Cheers
Tim.
Speak to your accountant, If no salary then should be no NI as its a deduction from gross pay.Started a business about 6 months ago. I have received a letter from HMRC for NI Contributions for self Employed.
Although the business runs 6 days per week, I am only working on it on weekends. The business is currently running at a loss and therefore I am not taking a penny out of it.
Why do I have to pay these? I also pay NI Contributions in my main weekday job. My job pays me approx the turnover of my business so I pay far my NI each month than they are asking.
If I explain this to them can i not pay these contributions? I have changed jobs since my business started up so they know that I am working.
Cheers
Tim.
Sorry amir, slightly differnt rules for the self employed (although the end result might be the same).
If you are genuinely making a trading loss, you will therefore be well below the NI limit for Class 2 NI contributions (a net taxable profit of £4,825 for tax year 2008/09). In order to ensure the Revenue stops hassling you for Class 2 NI you need to write to them explaining that you are below this limit (called the Small Earnings Exception limit) for 2008/09.
If you are genuinely making a trading loss, you will therefore be well below the NI limit for Class 2 NI contributions (a net taxable profit of £4,825 for tax year 2008/09). In order to ensure the Revenue stops hassling you for Class 2 NI you need to write to them explaining that you are below this limit (called the Small Earnings Exception limit) for 2008/09.
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