Share this content

Timing of Self Employed NI payments

Timing of Self Employed NI payments


A client of mine is a self employed dental hygienist. She started working during February 2011. She has registered with HMRC as a tax payer for which she needs to complete a Self assessment submission by Jan 2012.
I have three questions:
1. By when does she need to pay her NI contributions - by Jan 31 2012 or by 19 April 2011 (and ,omthly thereafter)?
2. What classes on NI does she need to pay?
3. Does she need to pay provisional tax based on her earnings to 2011? If yes, if her earnings increase during the next tax year does she need to increase her provisional tax as her payment no longer reflects what she is going to actually earn?
Thanking all in advance.


Please login or register to join the discussion.

By Locutus
11th Apr 2011 14:31

Brief outline of national insurance for the self employed

It's easier to answer all three of your questions in one go.  All figures quoted are for the current 2011/12 tax year.

Self employed people pay class 2 and class 4 national insurance.  In circumstances where earnings are low (below £5,315) or high earnings other sources (above £42,475) there is "exception" or "deferment", although I won't go into this here.

HMRC send out demands for Class 2 national insurance (charged at a flat rate of £2.50 per week) fairly regularly - I think quarterly or so.  Providing that she has completed a CWF1 (registering for self assessment and national insurance) then the demands will be sent out in due course.  I personally recommend to clients that they complete a CA5601 (application to pay class 2 national insurance by direct debit) and then you can forget about it thereafter.

Class 4 (calculated at a rate of 9% of profits where profits exceed £7,225 and below £42,475) is paid via the self assessment tax return, so is payable on 31 January following the tax year.

There are no payments on account of tax or national insurance in the year that you commence self employment, although if, after filing the first self assessment tax return, the tax and national insurance payable for the year exceeds £1,000 then there is a requirement to make payments on account for the following year - 50% due on 31 January and 50% due on 31 July.

Thanks (0)
11th Apr 2011 17:14

Class 2 - all change

From April 2011, Class 2 NICs become due on 31 July and 31 January - the same dates for Self-Assessment tax payments (though it appears you can still pay monthly by DD)

See here for details.....

Thanks (0)
12th Apr 2011 12:25

accounting year end

Another thought - has the client decided on the year end? If you are preparing first accounts to 31 March or 5 April 2011, fine, that will be the basis of her laibility for 2010/11, and you wil be straight thereafter. However if she has a different date, the first year will be time-apportioned, and you may need to put an estimated figure on the 2011 return, to be amended later.

Thanks (0)
Share this content