scvin
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national insurance

national insurance

• HMRC Debit & Credit Card Transactions Check

Hello,

If one has self employed earnings as well as employment earnings what are the NI rates payable? Would a person with the dual status end up having to pay more NI than if he was just employed?

It appears this is the case but anyone with more knowledge please assist.

Replies

22nd Feb 2016 15:51

Flat rate Class 2 NIC of £2.80 a week in 2015/16, if self-employed profits exceed £5,965, included in the tax self-assessment plus 9% of profits between £8,060 and £42,385 and 2% over £42,385.No - the total of Class 1 employed and Class 2 flat-rate self-employed NIC is limited to 53 x the maximum Class1 contributions at 12% plus 2% of any excess over the upper earnings limit.  Class 4 self-employed contributions are limited to the total of the maximum Class 4 contributions, 53 x Class 2 contributions and whatever Class 1 contributions are payable in the employment.

Thanks (1)
By scvin
22nd Feb 2016 16:11

Euan,

Thank you . Are you able to point me to the relevant section with HMRC's website ?

Thanks (0)
22nd Feb 2016 16:20

If you look at Stage 16 of the computation you will find

HERE you will find the Reg100 calculation and can work out the overall position.

Class 2 is in he return from 2015-16 and there is no longer any deferment of Class 4 so you have to pay Class 2 & 4 at normal rates then after 31 Jan following the tax year end (by which time you will know what Class 1, 2 & 4 has been paid and it will have been due for payment/paid) the client submits a CA5610 form to claim repayment.

Thanks (1)
22nd Feb 2016 16:59

Depends

It depends.  If he wasn't self employed, would he have the same income?

What's his marginal employed NIC rate ?  12% or 2%?

How much does he earn from self employment ?

How long are the pieces of string ?  Is the self employed string longer than the employed string?

You ask a question and fail to give sufficient information to give a useful answer.

Thanks (0)
By scvin
23rd Feb 2016 07:44