tax return and NI contributions...confused!

[woahthere]

Have just tried to do my tax return online. Have always done it online and never had any problem. This year however, Im a bit confused as it is adding on NI contributions when i already pay monthly for them, and, its adding on an amount for 2011-2012. Ive not submitted anything yet because Im not sure its right. I owe 1,500 more than I thought I would so want to be sure its correct! Have I done something really wrong or missed something?!

is it asking for/adding class 4 NICs? (a kind of income-related NI based on a sliding scale)

The NI you already pay will be Class 2 NICs, for benefit purposes

I think this is what that is

as Boys said for the NI
the 11/12 amount will be a payment on account for next year (you will have to make another in July) that is calculated as 1/2 of the 10/11 amount due - you only pay it when you are over certain limits.

So this is right and its because Ive earned more that I have to pay a different Ni amount and have to pay upfront for 2011 - 2012?! Can I swear now! sob.

[tissues]

have you double checked you have claimed all you can towards your expenses?

Another reason to hate January! Sadly unless you have a National insurance small earnings exemption certificate (if your earnings are below a certain level) then that's correct, as self employed we pay class 2 and 4. As for the 2011/2012 amount as mentioned previously that is your first payment on account (second payable by July 31st). If your earnings are going to be substantially less the following year and you know they will be you can reduce your payments on account but it is not advisable unless your sure otherwise HMRC will charge you interest on the difference between what you reduced to and what you should of paid. All good fun :)