Self Assessment Incorrectly Charged Class 2 NIC's

Savvy_Sue

*Rainbow*Warrior* wrote: »

I've tried it in safari and also firefox. Also in desperation have just logged in on my son's pc... it's exactly the same on all of them

Maybe there's something else I've done wrongly and I just haven't been able to spot it yet.

All I know is that I've found some 'official' forms which can be completed online don't like anything but Internet Explorer. Don't know if that's what you used on your son's pc.

sheramber

Have you completed PAYE pages for your PAYE income and self employment pages for your self employed income?

What figure does your self assessment page show for your total taxable profit?

*Rainbow*Warrior*

Yes, I've completed the PAYE section as well.

I've gone through my figures again and while I initially showed a small profit it's now showing an overall loss due to capital expenditure.

When you go down the list of pages in the tax return (the welcome page which lists each section), the page for Class 2 (when I click through to it) still says 'Your self-employment record shows you owe £145.60', though at the very end of the tax return the calculation shows I am due a small tax refund and there is no mention of Class 2 NIC.

Do you think the figure should change to £0.00 on the Class 2 page or will that continue to show the £145.60 but just not actually charge it at the end?

[Deleted User]

*Rainbow*Warrior* wrote: »

Yes, I've completed the PAYE section as well.

I've gone through my figures again and while I initially showed a small profit it's now showing an overall loss due to capital expenditure.

When you go down the list of pages in the tax return (the welcome page which lists each section), the page for Class 2 (when I click through to it) still says 'Your self-employment record shows you owe £145.60', though at the very end of the tax return the calculation shows I am due a small tax refund and there is no mention of Class 2 NIC.

Do you think the figure should change to £0.00 on the Class 2 page or will that continue to show the £145.60 but just not actually charge it at the end?

Try and see - save return and view calculation. What are you doing with your loss?

*Rainbow*Warrior*

[Deleted User] wrote:

Try and see - save return and view calculation. What are you doing with your loss?

I'm sorry but I don't understand - I feel really dim saying it, but I don't

I have saved the return, but when I view the calculation it just shows a tax refund due to me - there is no mention at all of NIC. Would that show on the calculation page? I had assumed on the Class 2 page it should show £0.00 but it still shows £145.60.

As to what I'm doing with the loss, I suspect you are thinking of carrying it forward? I hadn't even thought of that :o I don't really understand any of this - I have made a small loss on my self employed activity for the last few years and I just record it and move on. Have I been incredibly naive? Now thinking if I understood the system a bit better I could have made more sensible decisions.

[Deleted User]

If it is not in the calculation that is good?

Losses are as much a part of taxation as profits - ignored by DIY filers as too complicated which can be costly. Have you PAYE income above the tax threshold? If so you can set the loss against this - otherwise carry forward is the default position. How much is the loss?

*Rainbow*Warrior*

[Deleted User] wrote:

If it is not in the calculation that is good?

Losses are as much a part of taxation as profits - ignored by DIY filers as too complicated which can be costly. Have you PAYE income above the tax threshold? If so you can set the loss against this - otherwise carry forward is the default position. How much is the loss?

Yes, if it's not shown in the calculation I suppose that's good - but I expected the figure on the Class 2 NIC page to actually show nothing due but it still says I owe £145.60. That's why I'm confused! I was hoping someone else could remember what theirs showed so I would know if it's normal for it to still show the £145.60 due.

Yes you are absolutely right, I have ignored things that are complicated! To be honest I find the whole thing complicated but don't earn enough to justify paying anyone else to do it for me!

I have a part time job as well. In the 2015-16 tax year I earned less than 10k so have not paid tax on that (the refund due to me is, I believe, relating to taxed interest).

In recent years I earned more due to overtime so I did pay tax and to be honest, thought myself lucky to be getting a tax refund rather than having to pay extra tax on my self employed income as well as my PAYE income, so never thought about carrying losses forward.

The loss is about £300.

[Deleted User]

You have no option other than to continue to carry the loss forward. Just be vary that HMRC may view the 'business' as a hobby if it regularly makes losses - businesses should exist with a view to making a profit!

*Rainbow*Warrior*

I know what you mean, and long term I DO hope to make a profit.

I only make a loss at the moment because of the allowable expenses. As I operate from home I am able to claim a portion of electricity costs etc. and this means I tend to make a small loss each year as the earnings pretty much balance out the expenses.

I know they can choose to view it as a hobby but I'm not sure what the alternative is because I am earning money so therefore it has to be declared, and potentially I have to pay tax on it. I know they make the rules but I'd like to say they can't have it both ways! If I'm earning and potentially paying tax then it's only right that I claim allowable expenses.