Hi
Working full time and set-up a part-time business. What happens with NI.
I pay it in my full time job, do I still pay it separately as a Class 2 National Insurance contributions for the self-employed business?
Thanks.
Replies (6)
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How much are the earnings...
... from the employment. You may be able to apply for deferment. See HERE.
You can potentially apply for a deferment:Eligibility
You must be both self-employed and employed if you want to defer.
You can defer Class 2 for the 2014 to 2015 tax year if you’re likely to earn more than £805 a week as an employee.
You can defer Class 4 if you’re likely to pay more than £3,278.75 for your Class 1, 2 and 4 contributions.
Use the National Insurance calculator to work out your contributions for the 2014 to 2015 tax year.
How to defer
Send form CA72B to HMRC before the deadline. Read the guidance notes to help you fill in the form.
For the 2014 to 2015 tax year you must apply before 5 April 2015. If you apply after this date HMRC will only let you defer your Class 4 contributions.
Salary level?
If you earn above the maximums for Class 1 you can defer Class 2 and 4 until your total earnings for the year are known. There is an annual maximum applied to your overall position which NICO calculate and advise you after the year end if any extra is payable.
Apply for an exception
State that your earnings will be below the limit - even if you think they will be higher. You will get the exception for a year and even if your profits prove to be higher it will not be withdrawn retrospectively.
There is no point in paying both class one and class two where you don't have to.