No NI this time?

SVaz

I’ve slowed down this year and plan on doing even less in 25/26 as I have a pension kicking in at 60 later this year. 

My turnover is looking likely to be £32kish,  expenses around £6k plus I employ my Wife at £7k ( all official so she gets NI credits ) 

 my tax code is 1130 (married allowance).  
So only £5200 taxable profit. 

Am I right in thinking there will be no NI to pay?    

 I’m all paid up as far as State pension is concerned so no need for voluntary conts. 

Dazed_and_C0nfused

SVaz said:

I’ve slowed down this year and plan on doing even less in 25/26 as I have a pension kicking in at 60 later this year. 

My turnover is looking likely to be £32kish,  expenses around £6k plus I employ my Wife at £7k ( all official so she gets NI credits ) 

 my tax code is 1130 (married allowance).  
So only £5200 taxable profit. 

Am I right in thinking there will be no NI to pay?    

 I’m all paid up as far as State pension is concerned so no need for voluntary conts. 

No idea where you are getting your figures from.

If you have turnover of £32k and expenses totalling £13k then isn't your taxable profit £19k 🤔

Why do you think Class 4 NI doesn't apply to you?

Not sure what relevance your tax code has here (although just check your wife can defo benefit in full from Marriage Allowance as if not you are paying £252 more tax than is necessary).

SVaz

I’m an idiot.
I had it in my head that NI was only payable on taxable profits after personal allowance AND my tax code is 1387 not 1130 !

It’s a good job I pay my wife to do the accounts. 

She told me to try and get my head round tax stuff in case something happens to her.

Dazed_and_C0nfused

SVaz said:

I’m an idiot.
I had it in my head that NI was only payable on taxable profits after personal allowance AND my tax code is 1387 not 1130 !

It’s a good job I pay my wife to do the accounts. 

She told me to try and get my head round tax stuff in case something happens to her.

Worth asking then as you are better placed now than earlier this morning!

Class 2 rules have had several changes but I think LITRG website has a good overview of how it works for each tax year in recent times.

SVaz

I’ve just found the ‘estimate your self assessment tax bill’ on Gov uk and I think it’s going to be iro £1660 for tax and NI so I’ll be in credit as my payments on account will be £2800 .
I assume you can either leave it in your tax account or ask for repayment?     I get interest on the savings ‘pot’ in my Business account.
Do hmrc pay interest on cash you leave in?  

uknick

HMRC pay interest on over paid tax once the official due date has passed.  They do not pay interest on money paid in advance of the due date.

Taking a simple situation, if you over pay tax on 31 January, and there are no payments on account due, you should be eligible for interest on that balance from 31 January up to the date they refund you.

Payments on account will no doubt complicate the situation as you then need to look at what was due on 31 July and see how much of your overpayment could be construed as an early payment for July.

I'm sure there are those on here who have actual experience of how it works when payments on accounts are in the equation.

SVaz

I’ve currently paid a POA of £1390 with the next due in July,  will they not just then adjust that payment downwards once my Self assessment for 24-25 has been done ( submit in in May usually)  ?