NI for self-employed - confused about this?

[Deleted User]

Well, like I said registered as self-employed but didnt set a DD up. I was expecting them to send me a monthly bill.

I've sent off the exemption form but not heard anything back yet? Do I need to pay NI in the interim - dont want to get fined or anything?

mumslave

Why dont you just give them a call and get some reassurance? You shouldnt have to pay anything if you have only just registered as self employed and have claimed exemption. I never earn enough to pay tax on, but I chose to pay NI anyways, because of pension etc. I didnt get my first bill for 3 months, then it was around £32 I think. Since then its been the same quarterly.

[Deleted User]

mumslave wrote: »

Why dont you just give them a call and get some reassurance? You shouldnt have to pay anything if you have only just registered as self employed and have claimed exemption. I never earn enough to pay tax on, but I chose to pay NI anyways, because of pension etc. I didnt get my first bill for 3 months, then it was around £32 I think. Since then its been the same quarterly.

So they did sentd you a bill?

mumslave

yes they did. I am pretty certain when I originally registered as self employed, I was offered the choice of quarterly bills or direct debit. Originally I was direct debit, then when I moved bank account I cancelled the direct debit and they sent bills then instead (without my say so but was quite happy with that),

[Deleted User]

mumslave wrote: »

yes they did. I am pretty certain when I originally registered as self employed, I was offered the choice of quarterly bills or direct debit. Originally I was direct debit, then when I moved bank account I cancelled the direct debit and they sent bills then instead (without my say so but was quite happy with that),

Yeh. Thinking about it when I registered I chose not to set up direct debit.

I was just a bit concerned that they're expecting a payment off me before they process my exemption claim.

Savvy_Sue

I can't speak for these days, but in the long ago past when I did this I got a bill while they were processing my exemption claim, which was a bit later than perhaps it should have been for good measure. I phoned and explained and asked if I had to pay while awaiting the exemption form and they said no, although technically I think that's what all the documentation at the time said ...

[Deleted User]

Yeh. I just got a bill even though I sent the exemption form in weeks ago. I better phone them I guess.

theesel1994

FatAndy wrote: »

However if your profits exceed £5,715 then it's 8% of whatever your profits are.

That can't be right. Surely it is 8% of the profit above £5715 not 8% of whatever your profits are? eg if you made £5800 profit then you would pay 8% of £85, not 8% of £5800 ?

musicmam

Yes, theesel1994 its 8% of the profit above the limit not the total amount of profit.

[Deleted User]

Dont think theres much chance of us making £5000 this year. :-(