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NI Low Earnings Exception
gpk2
Posts: 2 Newbie
in Cutting tax
I am just coming to the end of 3 years Low Earnings Exception at the start of my part-time self-employment. I am also employed full-time so don't want to make unneccessary Class 2 contributions. However, as the Tax Year is coming to an end, I can see that my earnings are likely to be a few hundred pounds above the current limit.
If this is the case, will I have to pay contributions backdated for the full Tax Year? Or should I try to increase my expenses before the end of the Tax Year to ensure compliance? If I do the latter, can I apply for another year's exception even though I anticipate that next year's earnings will be substantially over the new limit?
I'v searched the HMRC website, but this is all very unclear, so any advice would be much appreciated.
If this is the case, will I have to pay contributions backdated for the full Tax Year? Or should I try to increase my expenses before the end of the Tax Year to ensure compliance? If I do the latter, can I apply for another year's exception even though I anticipate that next year's earnings will be substantially over the new limit?
I'v searched the HMRC website, but this is all very unclear, so any advice would be much appreciated.
0
Comments
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Being practical I would bring forward some expenditure to get your profits under the limit again for 2011/12 and then write to say you think you need to go back on the weekly system, if you really think you won't have enough expenses in 2012/13.0
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