Class 4 NIC self assessment

northwest1965

Perfect, makes sense now. Thank you all 

Jeremy535897

northwest1965 said:

Jeremy535897 said:

If therefore for 2019/20 we assume you earn £10,000 net from your cleaning business, and £2,000 net from your property, it works like this (ignoring the technicalities over how you get tax relief for the mortgage interest on the BTL, as they won't alter things):

Tax is on £10,000 + £2,000 = £12,000 less personal allowance £12,500 so is nil
Class 4 NIC is £10,000 - £8,632 = £1,368 x 9% = £123.12
Class 2 NIC is due of £159.00 (yearly figure)

where does the £8632 come from?

You have a personal allowance for tax of £12,500 for 2019/20 before paying tax
You can have self employed income of £8,632 for 2019/20 before paying class 4 NIC, as the link in the previous post sets out.