self assessment- don't understand class 4 NIC's calculation!

chazle

I hope someone can explain this for me

I have just submitted tax return online for my partner and printed off the calculation which in short says;

Taxable income = £7837.00
Income tax charged = £ 1567.40 (20% of 7837.00)

but just under that is says Class 4 nic £ 8597.00 @ 8 % = £687.76

I thought the Class 4 nics were 8% of the taxable profit ie £7837, so where have they got this figure of 8597 ????

Sorry if i am being dumb but I don't see how it adds up

Thanks in advance

Claire

Mikeyorks

Class 4 is only charged above £5715 (for 10-11).

So £8597 chargeable implies a base figure of £14,312? Which is the £7837 taxable income + the personal allowance of £6475?

So - all seems to compute?

http://www.hmrc.gov.uk/rates/nic.htm (scroll down to Class 4)

chazle

It all makes sense now thankyou!

Just wanted to make sure they weren't ripping us off lol (as if they would)