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Class 4 NICs - have the rules changed?

(8 Posts)
Bramshott Fri 12-Nov-10 15:28:35

Just doing my tax return for the 09/10 tax year, and shocked by how much they want me to pay for Class 4 NICs.

In 08/09 I had profits of about £10,000 and my Class 4 NICs were £390. This year my profits have been £14,000 (yay!) and they want £675 in Class 4 NICs. Has the rule / rate changed since last year, or have I filled in something wrong?!

Lancelottie Fri 12-Nov-10 15:30:44

Shocks me every time!

I suspect it's about right, as they kick in at profits over about £6000, so you've just about doubled your excess this year.

Lancelottie Fri 12-Nov-10 15:32:24

Just looked it up, and the threshold is £5715, so anything over this is payable at 8%. Hurts, doesn't it?

Bramshott Fri 12-Nov-10 15:35:41

Ah - thanks Lancelottie. That does make sense.

It's been creeping up as my profits have increased, but this seemed like a big jump, but of course you don't pay it on the first bit, just like tax. But blimey it does mount up quickly doesn't it!! Think I need to start setting a bit more aside each month for the tax bill!

Bramshott Fri 12-Nov-10 15:36:14

Dear God I am gibbering and barely coherent - sorry! That's what doing my tax return has reduced me to!

marriednotdead Fri 12-Nov-10 16:25:54

I feel your pain!

Have finally got ahead with IR but know the next tax bill will not be the refund we got last time sad

Struggled on peanuts last F/Y so nice to have DH working. However.
You can't win...

Lancelottie Mon 15-Nov-10 13:47:24

Bramshott -- if you've been paying a single lump-sum tax payment at the end of each year, be warned that they will probably also want payment 'on account' for next year, now that you are earning a bit more. This is usually hlaf the (expected) tax for next year in Jan and the other half in July.

In other words, you'll either need to pay roughly one-and-a-half year's tax in Jan, or get back to them as soon as you've calculated NEXT year's tax to get them to lower it.

That one really hurt last year!

Lancelottie Mon 15-Nov-10 13:47:39

hlaf? half!

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