NI due for my first year self employed

londonTiger

My tax for year ending Mar 2012 is due by 31st Jan 2013

However I just received a NI class 2 invoice for the same tax year but that is due by 31st July 2012. Does that sound normal? I am curious because of the recent MSE news about people receiving incorrect information from HMRC.

Also do I pay the NI from my business account or personal account?

ceeforcat

Class 2 NIC is collected by Direct Debit from your bank, normally quarterly, not through self assessment. It is payable from the date that you started self employment.

It really does not matter how it is paid - if through the business account it should be treated as drawings in any case.

PlutoinCapricorn

Assuming that you are a Sole Trader, you should be paying Class 2 contributions of approx. £2.50 per week regularly unless you applied for exemption on the grounds of small earnings. When you register, you normally get a Direct Debit form for paying Class 2 NI, and a form if you wish to claim exemption.

In addition, you may also be liable to pay an annual Class 4 levy of 9% on your profits if these exceed a certain amount. This is payable at the same time as you pay tax.

The bands, amounts etc. often change on April 6th; you can find them on HMRC's website.

londonTiger

I didn't get any DD notices, I was partially self employed. I was on payroll for the beginning of the year, andthen became self employed from august.. But you know how HMRC is like, they haven't given me my whole tax code yet. The latest one I received still mentions my previous employer in the letter. and it's not for the 6K limit it's on the 4K limit,.

londonTiger

Literally haven't received any information from dwp or HMRC about ni contributions until today,