Self employment tax return

htc20

Michael_Bear said:

@htc20 - "I dont even have to pay tax I choose too" - I'm hoping I've misinterpreted this. Feel free to defend yourself if I have.

Regarding your situation sounds absolutely rubbish, its a mistake I can imagine many of us would make and consequences seem so harsh.

Thank you! Hopefully you can see my appeal has been accepted and records updated accordingly. 
Can you clarify- defend myself for what purpose? 

My self employment earnings do not require me to pay tax as I don’t earn enough to be within the class brackets, however every year I choose to contribute. 

I think maybe you did misinterpret what I meant. 

SeagullFTB

htc20 said:

Michael_Bear said:

@htc20 - "I dont even have to pay tax I choose too" - I'm hoping I've misinterpreted this. Feel free to defend yourself if I have.

Regarding your situation sounds absolutely rubbish, its a mistake I can imagine many of us would make and consequences seem so harsh.

Thank you! Hopefully you can see my appeal has been accepted and records updated accordingly. 
Can you clarify- defend myself for what purpose? 

My self employment earnings do not require me to pay tax as I don’t earn enough to be within the class brackets, however every year I choose to contribute. 

I think maybe you did misinterpret what I meant. 

To my knowledge, you can't choose to voluntarily pay tax, hence Michael's confusion. However, you can opt to voluntarily pay national insurance within your tax return.

Uxb1

Yes - if you self employment earnings are small then you need not pay the NI contributions which would otherwise be due for the year and I think the online SA form defaults to the "don't pay" option.
You can however choose to pay them if you wish and you may indeed wish to do so as this will give you a complete year of NI's which will contribute to your entitlement to state pension which is based on the number of complete years NI contributions made during your lifetime of work.

[Deleted User]

How much are voluntary NI contributions likely to be on a small self employed income, assuming no other NI contributions are being made?

It's a few pounds a week isn't it?

And as you say it's worth it for the pension years.

SeagullFTB

Poster_586329 said:

How much are voluntary NI contributions likely to be on a small self employed income, assuming no other NI contributions are being made?

It's a few pounds a week isn't it?

And as you say it's worth it for the pension years.

It was £3 per week (£159 in 2019/2021 due to there being 53 week period in that particular tax year). Think its going up ever so slightly in 2020/2021.