Hello everyone,
Any help on this question will be greatly appreciated.
I have got myself very confused regarding class 2 national insurance.
I am currently employed and in bracket 2 for income tax and I am now looking to set up a small part time business (sole trader) and the profits I make from my business will be under £5,695;
Does this mean that I will be exempt from class 2 NIC? Or because my total earnings (from employment & sole trader business) will be above the threshold will I have to pay class 2 NIC?
Thanks
Will
Replies (7)
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Correct
Assuming your sole trade does actually make a profit at the level stated then you will pay no Class 2 or Class 4 National Insurance.
With regard to the tax however, if you're a higher rate tax payer then the whole profit will be taxed at the higher rate.
\Need to claim
Small earnings exception must be claimed as it is not the same as exemption and there is a time limit.
Things change
Agree with Basil.
In any case, one has been able to claim SEE in arrears for about 25 years now. Prior to some ill-remembered date, you had to claim before the start of the year or on commencement.
Thanks Basil
That aspect of the change had completely passed me by.
Lion-I had a late notification case a few years ago where late application was refused.
Really
Lion-I had a late notification case a few years ago where late application was refused.
Really ? On what grounds ?
I can't say I've had a huge experience in this - but I have obtained refunds for contributors on at least two occasions that I can bring to mind.
Claims refused
The only retrospective exemption claims I've had refused were where the client had already paid the class 2.
Other than that never had a problem
Changed
I was pretty much sure that the law was changed about ten years ago to permit repayments but I'm abroad in Berwickshire at the moment and can't check.
Amazed HMRC make a fuss over £150 or so.