National Insurance Question

lavern

A bit of an unusual situation I know. But, a question about National Insurance.

If I live here in the UK but work for someone in the US, earning less than the threshold at which NI is due, then just like working for a British company in the UK I assume I wouldn't be liable for any National Insurance.

Now, supposing that at the same time I was also self employed.

Would I only have to pay NI for the amount received as self employed income (after taking into consideration expenses etc), or somehow would the income from my paid employment also be taken into account?

System

Class 2 and class 4 contributions are due for the self-employed profits over certain thresholds

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1073790852

http://www.businesslink.gov.uk/bdotg/action/detail?type=RESOURCES&itemId=1075390995

Debt_Free_Chick

lavern wrote: »

Would I only have to pay NI for the amount received as self employed income (after taking into consideration expenses etc), or somehow would the income from my paid employment also be taken into account?

There are two entirely separate NI collected on each source of income. So you'll pay self-employed NIC on that income and employed NIC on the income from your employment.

lavern

earning less than the threshold at which NI is due,

I think I've got it now. I won't pay NI on my earned income from my employer because it will be less than the threshold at which NI starts.

I will, however, pay NI on my self-employed income as that is over the threshold.

In other words, each type of employment is treated separately for NI purposes.