NI contributions

simplydevine05

Hi everyone,

I am currently on sick leave from my current job and until the beginning of march am receiving half pay. As I do not know whether I will ever be able to return to work full time or even at all, I decided to set up my own business in October.
At the moment I do not have the money in the business to take an income just yet (I'm a sole trader).
I would like to know how it will work with national insurance contributions as I am still paying some from my "wage". With regards to the income threshold, is that included both employed and self employed income like for tax, or are they handled separately?
I have rung the tax office a few times but they're always so busy I end up not wanting to hold any longer! I even registered online!

Thanks to anyone who can help!

steve1980

If you're working and self employed then your personal tax amount will be used in your full time job.

You can apply for a small business waiver on National Insurance if you don't think you'll earn more than £5,XXX, The form is downloadable online as well as the Sole Trader/Self Employment form which needs to be completed and sent off ASAP. http://www.hmrc.gov.uk/sa/register.htm

You should also have a business bank account (I'll get shot for this) rather than a personal account. It looks much more professional having accounts in your business name rather than Mr J. Bloggs (it also screams scam but that's another story).

simplydevine05

Thanks Steve.