News0 min ago
NI contributions
4 Answers
I've been working freelance for a few months as I was made redundant in Feb. I have been registered self-employed for years as I did a bit of freelance work years ago and never unregistered so I already fill out a tax return.
Anyway I phoned the Inland Revenue a while go to ask about what I need to do about national insurance contributions and they told me I didn't need to do anything as it's included in the tax return. I've since read that you have to apply for that separately. So I'm not sure if the information they gave me was wrong. I'm going to phone the helpline again to see but does anyone know if what they told me would be correct? I should be back on pay roll soon and am a bit confused as to what I should do.
Thanks in advance.
Anyway I phoned the Inland Revenue a while go to ask about what I need to do about national insurance contributions and they told me I didn't need to do anything as it's included in the tax return. I've since read that you have to apply for that separately. So I'm not sure if the information they gave me was wrong. I'm going to phone the helpline again to see but does anyone know if what they told me would be correct? I should be back on pay roll soon and am a bit confused as to what I should do.
Thanks in advance.
Answers
1 to 4 of 4
Best Answer
No best answer has yet been selected by gloop. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.
If you are making a self-assessment return as a self-employed person, it is correct that the figures are calcualted as part of the return, so that part of the advice is correct.
You need to make Class 2 and maybe Class 4 contributions.
Start here (which explains about NI in general) then further down the page you can click onto Class 2 and Class 4 pages for additional info.
http://www.hmrc.gov.uk/nic/background-nic.htm
Y
You need to make Class 2 and maybe Class 4 contributions.
Start here (which explains about NI in general) then further down the page you can click onto Class 2 and Class 4 pages for additional info.
http://www.hmrc.gov.uk/nic/background-nic.htm
Y
The way it used to work (3 years ago - and I don't think it has changed) is that when you make your self-assessment tax return, it calculates what you owe in NI contributions and you pay them at the same time as the tax.
Depending what profit you made in the self-employed tax year, you pay the flat rate Class 2 contributions and the variable rate Class 4 contributions.
HMRC work it out for you - based on the profit figures you input - just the same as the income tax is done.
Depending what profit you made in the self-employed tax year, you pay the flat rate Class 2 contributions and the variable rate Class 4 contributions.
HMRC work it out for you - based on the profit figures you input - just the same as the income tax is done.
Ah right so it is all worked out with the tax at the end of the year so I won't have to fill out more forms? This must be what they meant on the helpline. I've read different things and it was just a bit puzzling. I'll call the NI helpline anyway to check it's still as you say. I'm unsure about the Class 4 still but I don't earn a huge amount anyway. I will hopefully be back on a pay roll for the company I'm freelancing for in a couple of months so this will most likely only be temporary.
Thanks for your help!
Thanks for your help!
1 to 4 of 4
