Employed and Self Employed NI

[mainlime]

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Can anyone answer my question on National Insurance?

I'm fulltime employed but when I phoned to tell the Inland Revenue that I will also have some self-employed income from affiliate marketing they told me I need to register as self-employed and start paying £2.20 a week NI contributions.

Is this right? I'm already paying NI at my full time job. I realise I'll have to pay class 4 NICs on my profits but I didn't expect to be hit with class 2 as well. Where do they draw the line? If I just did one or two pieces of freelance work alongside a full time job would they expect me to pay £2.20 a week for the whole year?

[ian-d]

Yep, self employed is different from employed, therefore you'll need to pay NI on your self employed profits and fixed NI of £2.20 aswell. I do beleive that if you pay too much NI you can claim back, but i'm no accountant!

[mainlime]

Thanks for the response. Should have known the taxman would have his hand in my pocket.

Someone on another forum pointed me towards this : HM Revenue & Customs: Refund of National Insurance contributions which seems to back up what you're saying about claiming refunds.

[hrbs]

Hi


You should apply for deferment , the form is at http://www.hmrc.gov.uk/forms/ca72b.pdf .

Self employed also pay Class 4 NIC based on the level of profit. Rates are at HM Revenue & Customs: Rates and Allowances - National Insurance Contributions .
If you defer part of your Class 4 liability you will be required to pay Class 4 NICs at a rate of 1% on all profits and gains above the Lower Profit Limit.

Regards
Keith
High Royd Business Services Limited
Small Business Specialists

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