NI for Self Employed 24 January at 7:20PM in Cutting tax 16 replies 284 views

confused.com2

Evening,

My wife has this afternoon submitted her tax return, she's fairly new to being self employed so a little unsure.
She had the following 
Income - £13,938
Expenses - £6580
Grant - £977

So a total profit - £7353

Yet it stated there was nothing to pay for NI and did she want to pay voluntarily. Looking though it appears her profit is above the threshold so surely has to pay?

Any ideas? We will check the form again when we can access it!

Thank you.

chrisbur

https://www.gov.uk/self-employed-national-insurance-rates

Threshold for class 2 and 4 is £11908 Class 2 is cheap and for some well worth paying voluntarily.
Sorry looking at wrong year

confused.com2

Isn't that the thresholds for the current tax year? I'm sure the 2021/2022 were lower?

Dazed_and_C0nfused

chrisbur said:

https://www.gov.uk/self-employed-national-insurance-rates

Threshold for class 2 and 4 is £11908 Class 2 is cheap and for some well worth paying voluntarily.

Isn't that 2022:23?

purdyoaten2

confused.com2 said:

Isn't that the thresholds for the current tax year? I'm sure the 2021/2022 were lower?

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions#class-2-and-class-4-national-insurance-self-employed

Jeremy535897

Does your figure of £7,358 (or £7,353?) include the grant of £977? How did the grant get declared? Was it SEISS? The class 2 limit for 2021/22 was £6,515.

purdyoaten2

Could it be something to do with having to register for both Class 2 and self-assessment? Maybe the former wasn’t done? Just a guess!

https://www.gov.uk/register-for-self-assessment/self-employed

confused.com2

Jeremy535897 said:

Does your figure of £7,358 (or £7,353?) include the grant of £977? How did the grant get declared? Was it SEISS? The class 2 limit for 2021/22 was £6,515.

Yes was a SEISS grant, it's included in the final total profit. There's a space to add it and it was added to the final calculation at the end of the form.

confused.com2

purdyoaten2 said:

Could it be something to do with having to register for both Class 2 and self-assessment? Maybe the former wasn’t done? Just a guess!

https://www.gov.uk/register-for-self-assessment/self-employed

That's interesting, definitely registered as self employed but unsure about the separate registration for class 2, I'd assume it'd be done as one. Best look into.

purdyoaten2

confused.com2 said:

purdyoaten2 said:

Could it be something to do with having to register for both Class 2 and self-assessment? Maybe the former wasn’t done? Just a guess!

https://www.gov.uk/register-for-self-assessment/self-employed

That's interesting, definitely registered as self employed but unsure about the separate registration for class 2, I'd assume it'd be done as one. Best look into.

Indeed - a similar query has been raised on this forum. It’s a possibility. 

https://www.accountingweb.co.uk/any-answers/class-2-national-insce-not-coming-up-on-sa

confused.com2

purdyoaten2 said:

confused.com2 said:

purdyoaten2 said:

Could it be something to do with having to register for both Class 2 and self-assessment? Maybe the former wasn’t done? Just a guess!

https://www.gov.uk/register-for-self-assessment/self-employed

That's interesting, definitely registered as self employed but unsure about the separate registration for class 2, I'd assume it'd be done as one. Best look into.

Indeed - a similar query has been raised on this forum. It’s a possibility. 

https://www.accountingweb.co.uk/any-answers/class-2-national-insce-not-coming-up-on-sa

Well looking at her gateway account I can't see anything about registering for NI contributions, think we'll need to contact HMRC tomorrow.