Class 4 NI question - please advise

Mr.Wrong

Hi all,
So last tax year ending 2015 I had a total income of £13,300 and I didn't have to pay any class 4 NI, I paid class 2 and had a rebate of £1,300 or so.
However this year I earned a total of £15,500 and a rebate of £2,250 reduced to £1,400 due to £150 class 2 and £695 class 4 NI.

Why have I paid it this year but not last year? I know it's anything over £8,000 is 9% class 4 but why not last year.
I'm a bricklayers labourer through a sub contractor, so I'm a sole trader not a business.

Could someone clear this up for me, is this a correct calculation. I've already received my rebate and I have 2 weeks left to dispute the class 4 NI calculation.

Kind regards

Darksparkle

Are you CIS? What deductions did you have each year?

HappyMJ

Mr.Wrong wrote: »

Hi all,
So last tax year ending 2015 I had a total income of £13,300 and I didn't have to pay any class 4 NI, I paid class 2 and had a rebate of £1,300 or so.
However this year I earned a total of £15,500 and a rebate of £2,250 reduced to £1,400 due to £150 class 2 and £695 class 4 NI.

Why have I paid it this year but not last year? I know it's anything over £8,000 is 9% class 4 but why not last year.
I'm a bricklayers labourer through a sub contractor, so I'm a sole trader not a business.

Could someone clear this up for me, is this a correct calculation. I've already received my rebate and I have 2 weeks left to dispute the class 4 NI calculation.

Kind regards

Class 4 is close enough should be 9% of anything in excess of £8,060.

Class 2 should be £2.80 per week so that's close enough as well.

I think you've done some rounding and that's maybe why the figures aren't exactly correct.

Mr.Wrong

It's not the calculations I'm confused about (rounding up and down etc) it's the fact I'm paying class 4 when I didn't last year.
I'm CIS and have had 20% deducted.
Why am I paying class 4 this year but not last year?

sheramber

For 2014/15 class 2 was not charged on the tax return. You paid it direct to Contributions Agency. So if there was a charge on your calculation for 2014/15 it would be class 4 NIC.

Dazed_and_confused

Mr.Wrong wrote: »

Hi all,
So last tax year ending 2015 I had a total income of £13,300 and I didn't have to pay any class 4 NI, I paid class 2 and had a rebate of £1,300 or so.
However this year I earned a total of £15,500 and a rebate of £2,250 reduced to £1,400 due to £150 class 2 and £695 class 4 NI.

Why have I paid it this year but not last year? I know it's anything over £8,000 is 9% class 4 but why not last year.
I'm a bricklayers labourer through a sub contractor, so I'm a sole trader not a business.

Could someone clear this up for me, is this a correct calculation. I've already received my rebate and I have 2 weeks left to dispute the class 4 NI calculation.

Kind regards

I always thought class 4 ni was part of your self assessment calculation so I think the problem here is not that you have had to pay some this year but more that you have managed to avoid paying any for the previous year. Chances are the HMRC will be along at some point to investigate this as it sounds very much like you have made a mistake when you completed last years return.

Sole trader/self employed/business all really one and the same and class 4 nic is normally payable by them all.