Self Employed NI Query


L

LJS

Hi,

I am self employed doing my first year self assessment return. My question
relates to NI, I registered for Class 2 NI upon starting my self
employment. My understanding was that I then did not need to pay Class 4
contributions.

When I fill in my return I see it asks questions about Class 4 contributions
and nicely calculates them for me !!

Am I misunderstood about the Class 2/Class 4 issue ? If not how do I fill in
the form correctly.

Many Thanks in advance
Lee
 
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D

Doug Ramage

LJS said:
Hi,

I am self employed doing my first year self assessment return. My question
relates to NI, I registered for Class 2 NI upon starting my self
employment. My understanding was that I then did not need to pay Class 4
contributions.

When I fill in my return I see it asks questions about Class 4
contributions
and nicely calculates them for me !!

Am I misunderstood about the Class 2/Class 4 issue ? If not how do I fill
in
the form correctly.

Many Thanks in advance
Lee
If your profit is above £4615 for 2003-04, then you are liable for Class 2 &
4 NIC.
 
J

Jonathan Bryce

LJS said:
I am self employed doing my first year self assessment return. My question
relates to NI, I registered for Class 2 NI upon starting my self
employment. My understanding was that I then did not need to pay Class 4
contributions.
You have to pay both.
 
T

Tim

... I registered for Class 2 NI upon starting my
self employment. My understanding was that I
then did not need to pay Class 4 contributions.
Oooops! You need to pay *both* (if your annual profits exceed the relevant
threshold).

Who told you that just £2-odd per week was sufficient to satisfy the
taxman??! :-(
 
P

Peter Saxton

Hi,

I am self employed doing my first year self assessment return. My question
relates to NI, I registered for Class 2 NI upon starting my self
employment. My understanding was that I then did not need to pay Class 4
contributions.

When I fill in my return I see it asks questions about Class 4 contributions
and nicely calculates them for me !!

Am I misunderstood about the Class 2/Class 4 issue ? If not how do I fill in
the form correctly.

Many Thanks in advance
Lee
Why do you think you don't need to pay Class 4? What is your
reference?
 
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L

LJS

Many Thanks - hold that holiday !!!
Doug Ramage said:
If your profit is above £4615 for 2003-04, then you are liable for Class 2 &
4 NIC.
 
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D

Dave

Any chance you could clarify the threshhold for me ?
your "threshold" as Doug Ramage explained to you is 4615 (the same as
your tax allowance)

Anything above this figure and you pay tax and national insurance on it.

For NI they call it class 4


PS STOP TOP POSTING !!
 

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