New NI for self-employed

leopoldo_2

I know that as of now the rate rises by 1.25% and also that in July the threshold rises by 3000 pounds. But how will that work in practice for someone who is self-employed and simply declares yearly earnings for 22/23 next year?

 I like to make sure that I put away a suitable amount every month for tax and NI (adjusting as the yearly picture emerges) so that there are no nasty surprises when I file my return.

All I can imagine is that there will be 2 separate boxes for earnings in 22/23?

[Deleted User]

The threshold will be apportioned - the old threshold for three months and the new threshold for nine months. The effect will be that you will not pay Class 4 NIC on the first 11908 of profits for 2022/23.

leopoldo_2

That's great to know, many thanks, will make it far easier to calculate based on my running total.