I've started my tax return, but am dothering..

[PinkChick]

Have found the limit of class 4 for 2009-10, but i cant for the life of me find the tax allowance..please point me in right direction.TIA

ahhh..found it.£6475..as soon as id typed this i found it LOL...so..same question as i prob asked last year ...say (no idea yet) ive earned £9000..do i pay NI4 on £3285 (difference between ni threshhold and gross) or do i take off the tax allowance first thus meaning i dont pay NI4?...LOL katy is going to kill me for forgetting this again haha.x

Oooh, do we have to work out how much we pay? I thought the spreadsheet worked it out for us...

Do you pay class 2 cons as well as class 4?

businesslink.gov.uk/bdotg/action/detail?itemId=1073790859&type=RESOURCES

Class 4 cons are payable on profits, not sure what 2009 / 10 figure is.

So if you t/over 9K, exps 6K net profit = 3K class 4 payable on the 3K.

Me finks

Scrap that, I'm having a blonde day LOL.

Profit figure for this year is £5715, so check the threshold for 2009/10 (would think it will be similar) so if you have made profit at or over that fig then you will pay class 4.

businesslink.gov.uk/bdotg/action/logicToolStarting?r.l1=1073858805&r.lc=en&r.l3=1075391048&r.l2=1073 859167&r.i=1077834098&type=BLTTOOL&itemId=1077834098&r.t=BLTTOOL

heres a nifty NI calculator that you can put your figures in.

Class 4 National Insurance contributions
Calculating Class 4 National Insurance contributions
Class 4 National Insurance contributions (NICs) are payable at 8 per cent on profits between £5,715 and £43,875 for 2009-10 plus 1 per cent on any profit over that amount.

Therefore, not all self-employed people become liable to pay Class 4 NICs.

When you file your annual Self Assessment tax return, the amount of income you declare will be the basis on which these Class 4 NICs are calculated.

If you become liable, you must pay Class 4 contributions, regardless of whether or not - as an employed earner - you pay Class 1 NICs.

Confused?

You were right first time PinkChick, if your profit was £9,000 in 2009/10 you pay class 4 NI's at 8% on (£9,000 - £5,715) = £3,285.

LOL am i confusing every one..thank you all though...so i have my gross earnings (fees0 then i take off all deductions/expenses/meals etc? and the figure im left with is profit?..so if that amount is over the NI4 amount i pay 8% on the amount..LOL..i ask every year and forget every year

pink, when you've done yours, fancy coming over to do mine? My address is.....

Yes that's right for Class 4 NI. You will also have income tax to pay on the total of all your income including this profit of £9,000 or whatever, less the personal allowance of £6,475 (and any other allowances or deductions you are entitled to).

You should have paid a sum on account of this liability in January, with another sum due in June but you don't have to pay the balance until January 2011.

erm dont think so number4 LOL.
Mranchovy, no i didnt pay anything, was expecting to but got letter saying not.
thakns for your help everyone