We have a GP client with Schedule E and D income sources for a number of years.
No small earnings exception has been in place and we intend bringing things up to date and wonder about the best way to go about it.
I have read previous threads on the subject of class 2 small earnings exception where self employment started before 30/4/01. Our client started self employment prior to this date so intend submitting a late claim for years 2001/2002 up to 2007/2008 when all years were below the SEE limit anyway so do not expect any problem here.
However, Schedule D earnings were £8k for 2007/2008 and Class 4 nic was paid at the main rate due to no deferment being in place. It is expected that 2008/2009 onwards will be around £5k just over the SEE limit. No Class 4 NIC would be payable.
Also, is there a reason why the SEE limit should be different to the personal allowance?
Should I ask for deferment of Class 2/4 NIC from 2007/2008 onwards instead of SEE? The client pays maximum Class 1 NIC.
Would be grateful to know what best approach may be.
Thanks
Colin
Replies (2)
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procedure
For 2007/8 I would ask NICO for a calculation and request a refund of overpaid class 4NIC.
For 2008/9 onwards download form CA72 and make the deferment claim wich has to be rnewed annually.