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Does anyone know anything about tax and National Insurance?

5 replies

cornsilkcremeeggspotter · 30/12/2009 18:32

I calculated a tax return online and the amount seemed loads - more than £1000 over what I had roughly calculated. But will that amount include N.I. contributions? I had paid some through a Direct debit and also my regular job but not much.

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FuriousGeorge · 30/12/2009 21:31

No,NI is separate,you either pay it direct [IR send a bill every quarter]or via your payslip.Are you self employed?

cornsilkcremeeggspotter · 31/12/2009 12:33

I was elf-employed. While I was self-employed for a bit. I paid a direct debit but don't know if it'll be enough IYSWIM. Think I'll have to get accountant to look at my tax return thEn - thanks for answering.

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roquefort · 31/12/2009 22:37

Self Employed people pay two types of NI contribution - Class 2 which is currently £2.40 per week and is paid directly - usually by either quarterly or monthly direct debit. Class 4 contributions are paid through your tax return in the same way that your tax is and for 2008/9 were 8 percent of all self-employed earnings between 5435 and 40040 (1% above that).

These are separate from any Class 1 controbutions that you would have paid on your employment income.

Hope this helps.

roquefort · 31/12/2009 22:40

Make sure that you have reported your income on the correct pages - Employment income on Employment pages and Self-Employment income on Self-employment pages. PAYE deducted should also go on the Employment page. If you have ceased SWelf-employment you should make sure to show the date of cessation in the appropriate box on the Self-employment page.

cornsilkcremeeggspotter · 02/01/2010 14:12

thanks roquefort

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