Income tax and National Insurance help please

[Grouchyoscar]

DH has just gone freelance. We know that means he'll have to pay his own tax and NI.

I was wondering does anyone know the formula for what % of his wage this will work out at? This means we can stuff it in a seperate account, not worry about it and earn interest on it until it needs paying.

All suggestions greatfully received and thanks in advance

I'd make provision for 23% and see how it goes. Has he got his own company?

Right, just double checked. Class 2 NIC is £2.20 per week.

see this leaflet with a downloadable for

This is so that he can register that he is self-employed, and start paying his Class 2 NIC by direct debit.

also look here

It's worth noting that if he doesnt notify the hmrc within 3 months of becoming self-employed then he could be end up with a penalty of £100 (and the hmrc dont need much excuse to hand out penalties!)

It might be worth him seeing if he can get a consultation with an accountant if he doesnt already have one.

Thanks everyone for all the pointers. DH is going to start to get it sorted

grouchy - I'm going self employed soon and have had some useful advice here and here