2nd yr self employed nics 4 question

duffs54

Hi

My first year self employed was just 1month march 2012, so that was easy but I am just doing my self assessment for 2012-2013 and it is talking about nics4.

My earnings are £15768
Expenses £3846

Its telling me that I need to pay nics now, but when I investigated it on HMRC website it said that in some cases I can stop my class 2 nics if I am paying the new nics 4 payments is this correct, do I just stop paying or advise them that I am stopping?

Ta lots

KiKi

duffs54 wrote: »

Hi

My first year self employed was just 1month march 2012, so that was easy but I am just doing my self assessment for 2012-2013 and it is talking about nics4.

My earnings are £15768
Expenses £3846

Its telling me that I need to pay nics now, but when I investigated it on HMRC website it said that in some cases I can stop my class 2 nics if I am paying the new nics 4 payments is this correct, do I just stop paying or advise them that I am stopping?

Ta lots

Where does it say that, do you have a link? You pay both NIC2 and NIC4 if you are earning a certain level (which you are). I'm not aware you stop paying Class 2 at all given the numbers you've put there.

duffs54

oops sorry it was on here not the gov site, but I think her earnings are different

https://forums.moneysavingexpert.com/discussion/4842372

chrisbur

duffs54 wrote: »

oops sorry it was on here not the gov site, but I think her earnings are different

https://forums.moneysavingexpert.com/discussion/4842372

The reason this poster was able to get exemption from class 2 NI was due to low self employed earnings, under £5725. Your self-employed earnings are far higher than this, and anyone having to pay class 4 will have earnings to high to get exemption from class 2.

duffs54

Thanks Chris