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Excess NI

Excess NI

Doing Self assessment for client for 2010/11. He retired half way through the year and set up as a self-employed sole trader. His class 1 NI in the first half of the year and Class 4, as assessed, together exceed the maximum by some £1700. Is it right that there is no way to self assess the true amount of Class 4 payable but instead I have to assess the nominal full Class 4,and client has to pay it before 31 January 2012, and on 1 February he can submit a claim (CA5610) for a  refund? Or have I missed something?

Would very much appreciate confirmation or otherwise. If I'm right, I'm Just wondering how I'm going to explain this to client. . .


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16th Dec 2011 12:07

In this situation

I would normally complete a deferment application and tick the box on the return to say that deferment has been granted.  Not strictly correct, but I have never seen a deferment application refused. 

In the unlikely event that it would be refused, you have 12 months to amend the return anyway.  Just warn the client that they may be required to make a payment later.

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