Do you have to pay NI?

gravlax

If you get commission from affiliate links on websites and get about £1k per year do you have to declare this as self employment and pay national insurance on this?

The only other income is from dividends and investments, no salaried employment income.

[Deleted User]

No to the self-employment because of:

https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income

No to NI as no profit on income under £1000 and trading allowance claimed. Even if there was a profit, it would have to exceed £11909 (at the last count).

gravlax

Thanks for the link.

I see that it puts income from self employment and property together. If you had net income from rental income over the personal income tax allowance, you pay tax on the excess, and on any other income. But would you then have to pay NI (as well as income tax) on the £1k comission income?

Dazed_and_C0nfused

gravlax said:

Thanks for the link.

I see that it puts income from self employment and property together. If you had net income from rental income over the personal income tax allowance, you pay tax on the excess, and on any other income. But would you then have to pay NI (as well as income tax) on the £1k comission income?

No.  Rental income doesn't involve paying NI.

However it may be prudent to pay voluntary Class 2 National Insurance as that is a (very) cheap way to accrue an additional qualifying year for State Pension purposes.

But ultimately it depends on whether there is any benefit in doing so.

Some people seemingly become self employed primarily to pay Class 2 National Insurance.

gravlax

Dazed, I wasn't suggesting that rental income was liable for NI. 

I wanted to know if income from website affiliate links was liable to NI.

The first reply said no because £1k but what if you get £2k? At what point if any does affiliate income make you self employed or liable to pay NI on the income?

[Deleted User]

gravlax said:

Dazed, I wasn't suggesting that rental income was liable for NI. 

I wanted to know if income from website affiliate links was liable to NI.

The first reply said no because £1k but what if you get £2k? At what point if any does affiliate income make you self employed or liable to pay NI on the income?

If your turnover is more than £1000 you must register as self-employed. If your profits are more than £6725 you are also liable to pay class 2 NIC (although, as Dazed says you can pay voluntarily under that limit). If your profit exceeds £11909 you are also liable to pay Class 4 NIC.