income tax and NI questions

fenwick458

hi, i'm in the process of doing my accounts now and got a few questions,
firstly heres all the info you'll need to know:

• I left the army last year on the 4/10/2010, Gross pay from them for this tax year was £8080.38. tax deducted was £1071.60 and NI was £554.46
• I registered self employed on 13/09/2010
• on 08/11/2010 I got some work and started earning
• so far gross earnings from my self employed work are £3710, and estimated for this tax year will be £4256
• I have been paying Class 2 NI since 13/09/2010

and now the questions-

• class 2 NI needs to be payed if you earn above £5075, do i need to pay this?

• and Class 4 NI is 8% of earnings between £5715-£43,000, again, will i have to pay this?

• If so, will it be 8% of my total earnings from when i was self employed?

• will income tax just be 20% of my total earnings?

have tried searching the govermnent website but can't find a definate answer! thanks

suso

fenwick458 wrote: »

and now the questions-

• class 2 NI needs to be payed if you earn above £5075, do i need to pay this?

• and Class 4 NI is 8% of earnings between £5715-£43,000, again, will i have to pay this?

• If so, will it be 8% of my total earnings from when i was self employed?

• will income tax just be 20% of my total earnings?

have tried searching the govermnent website but can't find a definate answer! thanks

class 2 wouldn't need to be paid, but there will be a gap in your NI history and could affect future benefits,

class 4 is paid on Self Employed profit above £5715, so this year there will be no payment for this.

Are the figures quoted above the turnover or the profit ? if profit then you can expect the following tax bill

Total Income - £12336.00
Personal Allowance 6475
Taxable Income - £5861.00
Tax due - £1172.00
Tax already Paid £1071.00

Tax due 31/1/2012 - £101.00

Income tax is profits minus personal allowance * 20% Provided the you do not earn enough to go into the higher rate band

fenwick458

hi, thanks for the reply.

the figures I quoted above; from the army, those figures i got from my last pay statement which tells you total earnings, tax and NI paid in this tax year so far.

;from my self employed earnings, it is just the total I have been payed , (i.e, 532 hours @ £8/hr = £4256), also what might be worth mentioning is i have been ratching through my receipts and reckon i have found £1700 worth of expenses, how whould that affect things?