Paying National Insurance twice

davidrob

I think I am paying National Insurance twice. I'm not really sure, the wording of the HMRC website is confusing.

Last tax year I earned about £8000, my only job, self employed. Naturally I had to pay tax and National Insurance, Class 2 I believe.

This year my situation has changed and I am now working two jobs, self employed and PAYE. The PAYE job I earn about £11,000 a year and National Insurance gets taken off automatically. I earn about £3500 self employed.

I continued to be sent quarterly bills for self employed National Insurance after I started my PAYE job, so phoned The National Insurance Contributions office who said I didn't need to pay NI on my Self Employed earnings and sent me a form to fill in.

I sent it, and a few weeks later I got a letter stating I would have to continue paying Class 2 Nic as my earnings for 08/09 were over £4,825.00.

So I'm now paying NI monthly on PAYE (£46.96) and NI quartely on my self employed earnings. Surely I shouldn't be paying more than £46.96 a month for earnings of about £15,000 a year?

Thanks for reading, and I hope it makes sense.

fengirl_2

You need to tell them that your current self employed profit is under the threshold, I think. Even if you are paying class1, you still have to pay class 2 if your profit is above the lower earnings limt, unless you are paying maximum class 1.