Tax return and National Insurance contributions

[KAZ]

I have been self employed since July last year, as I don't earn that much I pay voluntary National Insurance contributions (�2.30 week I think?). before this I was in a normal job paying National Insurance contributions on my wages as usuhal. Please can anyone advise if and how you delare this on your tax return? do you add it as an expense? I have not done a self assessment form before and I am getting a bit confused!...Thanks

[Spaghetti]

Judging by the amount you mention, what you are paying is Class 2 (self-employed) contributions, not Class 3 (vouluntary), which are rather higher.

National Insurance contributions are NOT an allowable expense and shouldn't be mentioned anywhere in your tax return.

I do this sort of thing for a living and don't mind answering any other questions you have, but for obvious reasons I don't want to post my email address here. If you want to post yours I'll get in touch with you.

[Spaghetti]

I should have added - free of charge!

[tamborine]

You should inform the IR you're S-Employed and IR will send a quarterly bill of around �23 for Tax & NI, un-reclaimable.

In March/April 2010 you will be required to submit SE Tax return, (�100 fine, if late). Local IR can tell you how to complete it. Log on Excel all your exes & keep receipts for proof. Keep all bank statements, Credit card invoices, cheque stubs etc.

[TCL-MUMPING]

Class 3 NI is �12.05 and Class 2 is �2.40 at the moment. Being S/E does not mean you are liable to pay Class 2, if you have a Certificate of Small Earnings Exception a person is exempt (I've never understood why it's an Exception Certificate and not an Exemption Certificate) .

That is the limit of ma expertise so I will leave you in the hands of Spaghetti

[KAZ]

Hello, Thanks for the advice, Well I filed my tax return on-line today and it appears they owe me approx �400 Yippee! How long does it take to process this?