Self assessment query: Class 2 NICs and interest earned on savings.

Sinbad

I’m doing a self assessment for 23-24 and I’m looking for clarification with the following.

It’s not big income, just 1800.00 after expenses.

The box is ticked to pay Class 2 NICs which should be 179.40.

'Interest received from UK banks and building societies' comes to a figure of 116.00

When I get to the 'View your Calculations' page, I would expect to see a figure due of 179.40 as the interest earned is less than 1000 and earnings are less than the single persons allowance.

Weirdly, its suggesting that 'Income Tax and Class 2 National Insurance contributions due' amounts to 63.40

Crunch the above numbers, it is suggesting to me that the NIC amount has been reduced by the interest paid on the savings.

Is this correct or have I done something wrong?

TIA

Inbetweeners

Were you self-employed for the full year?

Dazed_and_C0nfused

Sinbad said:

I’m doing a self assessment for 23-24 and I’m looking for clarification with the following.

It’s not big income, just 1800.00 after expenses.

The box is ticked to pay Class 2 NICs which should be 179.40.

'Interest received from UK banks and building societies' comes to a figure of 116.00

When I get to the 'View your Calculations' page, I would expect to see a figure due of 179.40 as the interest earned is less than 1000 and earnings are less than the single persons allowance.

Weirdly, its suggesting that 'Income Tax and Class 2 National Insurance contributions due' amounts to 63.40

Crunch the above numbers, it is suggesting to me that the NIC amount has been reduced by the interest paid on the savings.

Is this correct or have I done something wrong?

TIA

When did your business commence?

Also, the £1,000 savings nil rate band (aka Personal Savings Allowance) is of no relevance to someone who hasn't used all their Personal Allowance and savings starter rate band.

Inbetweeners

I think what we are both getting at is you only pay Class 2 NIC  for each qualifying week you were self-employed. So a Class 2 bill of £63.40 would suggest approx 18 weeks of self-employment in 23/24?

Sinbad

Dazed_and_C0nfused said:

Sinbad said:

I’m doing a self assessment for 23-24 and I’m looking for clarification with the following.

It’s not big income, just 1800.00 after expenses.

The box is ticked to pay Class 2 NICs which should be 179.40.

'Interest received from UK banks and building societies' comes to a figure of 116.00

When I get to the 'View your Calculations' page, I would expect to see a figure due of 179.40 as the interest earned is less than 1000 and earnings are less than the single persons allowance.

Weirdly, its suggesting that 'Income Tax and Class 2 National Insurance contributions due' amounts to 63.40

Crunch the above numbers, it is suggesting to me that the NIC amount has been reduced by the interest paid on the savings.

Is this correct or have I done something wrong?

TIA

When did your business commence?

Also, the £1,000 savings nil rate band (aka Personal Savings Allowance) is of no relevance to someone who hasn't used all their Personal Allowance and savings starter rate band.

The business has been going for a few years and this year is indeed a full year

uknick

Do you receive any state benefits that may impact on notional state pension years?  For example, Carer's Allowance counts towards pension years and as such will reduce the weeks of class 2 you need to pay.

Sinbad

uknick said:

Do you receive any state benefits that may impact on notional state pension years?  For example, Carer's Allowance counts towards pension years and as such will reduce the weeks of class 2 you need to pay.

No, state benefits. Just the 1800.00 after expenses and that's it

Inbetweeners

Wondering if it's to do with 23/24 being a transitional year for basis period. What is your accounting period?