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NICs, moving from employed to self-employed mid-tax year

1 reply

Brachytherapyquestions · 31/01/2025 19:49

This is someone in Scotland in case that impacts anything. Just wanted to make that clear as sometimes guidance differs.

So here's hoping for some advice, simply to get a feel for things. Shall of course look further into things what with this being the internet and all.

My friend, Sam, was a part-time employee for a few years at a business and taxes and NICs were deducted by her employer as is the norm. In Oct or Nov 2024, Sam was made redundant so she fell back on a trade/skill she had and she is now self-employed. The self-assessment tax form mentions two classes of NICs (class 2 and class 4) and they appear to relate to the business' profit. Presumably this is Sam's profit whilst self-employed and not for the whole year since whilst she was an employee her NICs were paid through her employer's system? Because she had a salary then, not a profit, and her NICs are up to date until she was made redundant. There was no overlap of the employed and self-employed periods in case that is relevant.

OP posts:
Brachytherapyquestions · 31/01/2025 20:00

I should add I'm suggesting to Sam that she consider an accountant to avoid any errors of course but I wanted a general overview. And I have a ND diagnosis, once I get into a thing I can really get into it.

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