NI Class 2 & 4 Deferment

Doh

Hi All, i'm currently employed full time obviously paying class 1 NI Contributions via PAYE.

I also run a small internet business on the side, over the last 3 years my profit has been less that £3k so i've got a class 2 & 4 exemption certificate...

However for this tax year i'm looking at making over £8k profit, so will obviously loose my exemption - i've been trying to work out how much NI i will be paying but am struggling! class 2 is easy just a weekly payment of £2.30

its the class 4 i'm struggling with, it seems to be 8% above my allowance - though do i get an allowance if i'm also employeed? and also the HMRC site suggestions if you also pay Class 1 in an employed job you may get exemption if i've over a certain amount, though i can't find this "amount" anywhere - anyone got any ideas?

Cheers
Pete

Murdina

Class 4 NIC is payable at 8% as you say from a set figure up to a maximum, above which it is payable at 1% without limit.
Class 1 is paid in the same way i.e. from and to a a threshold and then 1% after that. So yes in effect you do get 2 lots of lower limit.
Broadly, if your total employed and self employed earnings exceed the upper limit, you can apply to defer.
Have a look at http://www.hmrc.gov.uk/nic/deferment.htm and
http://www.hmrc.gov.uk/rates/nic.htm

Cook_County

Don't forget that the Class 4 NIC is just a tax - it buys no benefits - so you may want to look at your changing your accounting date, capital allowance claims etc if this year is just going to be a one-off.

Doh

thanks guys right as i understand it i don't earn enough in my first job to qualify for deferment as its just over 34k (i earn just under 32K) but from what your sayin i would only have to pay 8% NI on about 3k of my self employed income...

i think its time i got an accountant as i'm sure i could be saying some tax/NI somewhere