Why it makes sense to buy a new laptop ...

zygurat789

notanewuser wrote: »

No, it means that you aren't liable for class 4 NI until your self employed earnings are over £5800 a year.

Are you sure you'll spend no more than 7 hours a week on non-work things on the laptop?

For 2013/14 Class 4 Ni is charged on taxable profits of £7755 and above at 9%. It is possble to claim not to pay Class 2 Ni if taxable profits are less than £5725.

You have cast doubt on your 50% claim by listing other programs you will be using, presumably on top of all the usual one like facebook, twitter etc.
If you have a doubt, turn gamekeeper and work out how you would set about disproving your claim of 50% private use.And I can't see anywhere you said you were going to claim 100% either.

slhqoue

Thanks for your reply zygurat789.

For 2013/14 Class 4 Ni is charged on taxable profits of £7755 and above at 9%. It is possble to claim not to pay Class 2 Ni if taxable profits are less than £5725.

So this is totally unaffected by the fact that I have a full-time job and get paid through PAYE as well as doing freelance work? I would have thought the NI contributions would be assessed similar to the basic tax rate - so that they take into account my regular income.

scragend

slhqoue wrote: »

Thanks for your reply zygurat789.

For 2013/14 Class 4 Ni is charged on taxable profits of £7755 and above at 9%. It is possble to claim not to pay Class 2 Ni if taxable profits are less than £5725.

So this is totally unaffected by the fact that I have a full-time job and get paid through PAYE as well as doing freelance work? I would have thought the NI contributions would be assessed similar to the basic tax rate - so that they take into account my regular income.

Your PAYE income does not affect Class 4 NI.

Class 4 NI only relates to self employment (& partnership) income and has no connection at all to employment income.

You pay Class 1 on your employment income and Class 4 on your self employment. They are separate.

So if your self employment income is below the threshold for Class 4, you don't pay any - regardless of what your employment income is.

tiger_eyes

Hi, another editor here! I'm a full-time freelancer and spend my days working with Kindle self-publishers. I love the work and business is great. Good luck with editing - are you just starting out?

slhqoue

I see! Thanks all.

It is possible to claim not to pay Class 2 Ni if taxable profits are less than £5725.

My profits won't be over this threshold. Should I claim not to pay these at the time of my self-assessment submission to HMRC?

I see on the HMRC website that "You pay Class 2 National Insurance contributions at a flat rate of £2.75 a week." I assume that this counts my 'business activities' as continuing for the whole year, and thus I'll pay £2.75 x 52 weeks?

00ec25

https://www.gov.uk/self-employed-national-insurance-rates
read and follow the CF10 link taking note of the instructions therein:
"send us the application form on pages 3 and 4 as soon as possible. ... If you have not filed any Self Assessment returns, please send us a copy of your profit and loss accounts with your application, unless you are a new business, in which case your estimate will be sufficient."

slhqoue

Fantastic, thanks