Tax/NI on 2nd job as self emp

crum

Hi


I already have a full-time employed job & want to use my spare time to do self employed work but have a few questions....
I don't expect to be earning huge amount....no more than £100 profit to start with while I'm finding my legs.
Does NI2 only take into account the self employed earnings in that case I can apply for exemption?
What about NI4?
As it's a 2nd job does the tax man automatically want 40% of my profit??
HELPPP x

PlutoinCapricorn

Class 2 NI applies only to the self employment, so you can claim exemption on the grounds of low earnings. Some people pay this even when exempt just to get entitlement to certain benefits, but your Class 1 contributions in the PAYE job will cover this.

Class 4 applies to profit over a certain amount, which is much higher than your estimate, so you will not be asked to pay this levy.

Unless you go into the upper tax rate band, you will pay 20% income tax on any profit you make.

crum

Thank u :-)

zygurat789

PlutoinCapricorn wrote: »

Class 2 NI applies only to the self employment, so you can claim exemption on the grounds of low earnings. Some people pay this even when exempt just to get entitlement to certain benefits, but your Class 1 contributions in the PAYE job will cover this.

Class 4 applies to profit over a certain amount, which is much higher than your estimate, so you will not be asked to pay this levy.

Unless you go into the upper tax rate band, you will pay 20% income tax on any profit you make.

Class 2 Nics exemption has to be claimed in advance for income below £5885.
Class 4 NICs is 9% of income from £7956 to £41865 and 2% above that.