National Insurance Contributions

Invicta

My apologies if this is covered elsewhere - if so please redirect me.

After being made redundant (for the 3rd time in 8 years) I am looking into setting myself up as a sole trader but can't find how I continue to make my NI Contributions.

Can anyone help please?

Bern
Tewkesbury

BoGoF

Once you register as self-employed you will also be registered to pay class 2 national insurance contributions - these can be paid by direct debit or quarterly bill.

Depending on your profit you may also be liable to class 4 national insurance contributions which are paid with your tax bill. The HMRC site will have more info.

Invicta

BoGoF
Thats just what I was after - thank you.

Would you happen to know how I handle the odd bit of work I might do for Temporary Agencies?
e.g. 3 days a month working for an Angency while also being self employed as a sole trader.

Bern

BoGoF

Chances are the the agency work will be taxed as normal through PAYE and be employment income. When it comes to completing your tax return at year end you will just complete an employment page for the agency work and a self employed one for your sole trader work.

BoGoF

Here is the link to the HMRC section on registering as self employed.

http://www.hmrc.gov.uk/selfemployed/iwtregister-as-self-employed.htm

From April next year the class 2 rate will be £2.40 per week and the class 4 rate 8% on profits above £5715

Invicta

BoGoF,

Another mystery solved.

Many thanks for making this so understandable.
Things are a bit fraught here at the moment (I've earned £150 in past 2 months and the redundancy money is dwindling down, even with our cutbacks in expenses) so the simpler the guidance the easier it is for people like me to make the right choices.

I appreciate this is a risk but I've always said I could do a better job of running a business than 80% of the people I've worked for - so here's my chance to put that to the test.

Kind regards,
Bern

BoGoF

Good luck with the venture

Invicta

If you get up around tewkesbury let me know and I'll pop the kettle on.

Bern