Annual class 4 maximum and deferment

Annual class 4 maximum and deferment

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Having poured over this on and off for the last two days(!) with a hot towel round my head I wondered if a greater expert than me could very kindly check my conclusion on this employed and self-employed situation.

Year: 2012/13

Class 1 paid: £1690

Class 2 paid: £82

Self-employed profits: £14,482

As I read it, this falls into case 2 of regulation 100(3) as illustrated in NIM24187 and following that example I’ve calculated the annual maximum C4 as £1506, and concluded that the normal (9%) C4 calculation - £619 - should be paid as part of self-assessment and no deferment is needed or refund due.

Any help very much appreciated!

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By ACDWebb
27th Sep 2013 08:56

Probably, but you need

the Class 1 boxes (a)-(d) from the P60 as the Class 1 at Step 4 is (c) + (d) at the primary rate, and not necessarily - though probably - the Class 1 paid.

Otherwise I think your assumptions are correct

 

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Replying to Ruddles:
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By agburton
26th Sep 2013 18:35

Thanks very much ACDWebb.

Thanks very much ACDWebb. Take the point about Step 4: here there is no P60 just P45, which of course doesn't show NI. I will get the final payslip, but this won't really help. What I've already done is work backwards using monthly gross pay minus PT times 12%, (client is paid monthly).

Appreciate your input.

 

 

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