A little confused with my Class 4 National Contributions

monkeybrains

Hi.

I've just filled in my self assessment and am wondering how the "plus Class 4 National Insurance contributions" figure is worked out?

I don't mean the 9% total but the figure that this is taken from.

Gas_Powered_Toothbrush

monkeybrains wrote: »

Hi.

I've just filled in my self assessment and am wondering how the "plus Class 4 National Insurance contributions" figure is worked out?

I don't mean the 9% total but the figure that this is taken from.

Your profit for the year from self employment / partnership income, minus the threshold of £7755. 9% is charged on the balance.

monkeybrains

Many thanks for the reply

Profit was £10,624 so with the threshold at £7755 it should be £2,869 but it is showing as £3,019

@9% is showing £271.71

Gas_Powered_Toothbrush

My bad, the £7755 was this year's threshold. If you're doing a tax return for the 12/13 year the threshold was £7605, which matches your figures.

monkeybrains

Thanks again.

I looked it up online and thought it was correct at £7755 but as you've pointed out, I should be going by last years threshold.
:beer:

zygurat789

Gas_Powered_Toothbrush wrote: »

My bad, the £7755 was this year's threshold. If you're doing a tax return for the 12/13 year the threshold was £7605, which matches your figures.

This just goes to prove that it isn't only accountants who talk absolute nonsense.

Gas_Powered_Toothbrush

Thank you for your irrelevant opinion.

zygurat789

Gas_Powered_Toothbrush wrote: »

Thank you for your irrelevant opinion.

Obviously it isn't irrelevant since it forced you to remove your offensive signature; and rather than admitting your mistake you have chosen to be devious.