NI on Ltd company when employed?

Kosenurm

Hi.
I am full time employed and earn £65,900 per year, paying Class 2 NI.

I have just set up a ltd company as a side hustle, expected to turnover £3k per year. Do I have to pay any NI on the ltd company? There are no employees just me as director.

Thanks

K.

tightauldgit

Are you going to pay yourself from the Ltd Company? 

You'll need to do a Self Assessment return on the earnings from the Ltd company and that will calculate what if any NI is due to be paid. 

Jeremy535897

Given your other income, any pay you take from the limited company will be taxed at 40%. Even if you withdrew all the £3,000 as earnings there would be no national insurance because the income is well below the lower earnings limit, and your company is not going to be "associated with" your employer. Self assessment tax returns don't calculate class 1 NIC liabilities. The company does not need to operate PAYE if you are the sole employee and are paid under £123, but you would have to declare the income on a self assessment tax return.