N.I Contributions?

Ryiah

Hi, I work full time and pay £162.70 for National Insurance. In August I registered as Self Employed as I wanted to start a pet boarding business. I am now doing this as well as my full time job.

Since August I've made about £150 on my pet boarding business. In November I got a letter from HM Revenue & Customs saying I had to pay £26 for NI, which I paid.
Today I have received another letter saying I need to pay £31.20. I am pretty shocked at the amount. Why do I have to pay so much N.I on such a small income? I already pay National Insurance for my full time job, which I accept.

I'm going to give the number at the back of the letter a call tomorrow, but I just wonder if anyone can explain why I pay two amounts of NI and why the amount for my business is so much, compared to what I earn.

I did have a look at contributions and it says if I earn under £5075 I could be exempt. But is that seperate for each job, or do they count both earnings as one?

Many Thanks

jennifernil

No, you need to apply for an exemption for your self employment.

ceeforcat

Download leaflet CF10 from the HM Revenue & Customs (HMRC) website (PDF, 56K) - Opens in a new window.


HMRC do not know your self employed earnings!

Ryiah

Thanks Very Much! That's great, I will fill in the form straight away.