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  • FIRST POST
    • Tiggy748
    • By Tiggy748 16th May 19, 2:29 PM
    • 4Posts
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    Tiggy748
    Reclaim NI
    • #1
    • 16th May 19, 2:29 PM
    Reclaim NI 16th May 19 at 2:29 PM
    Last tax year (18/19) I registered as self employed.
    I was also employed. The self employment made a loss so I have reclaimed my tax but have overpaid NI by 1200 through my employment based on overall earnings.

    How do I reclaim the NI? And as I'm expecting another loss this year, how do I prevent my employer overpaying going forward?
Page 1
    • BoGoF
    • By BoGoF 16th May 19, 2:32 PM
    • 4,381 Posts
    • 3,920 Thanks
    BoGoF
    • #2
    • 16th May 19, 2:32 PM
    • #2
    • 16th May 19, 2:32 PM
    You don't because you can't
    • Caz3121
    • By Caz3121 16th May 19, 2:39 PM
    • 11,975 Posts
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    Caz3121
    • #3
    • 16th May 19, 2:39 PM
    • #3
    • 16th May 19, 2:39 PM
    NI is worked on pay periods and not full year like tax. From you employed income you would be paying 12% on your income if it is between 719 to 4,167 a month
    have you been paying class 2 and 4 on your self employed income as well as the NI from your employment? (is that why you think you have overpaid?)
    • Tiggy748
    • By Tiggy748 16th May 19, 6:16 PM
    • 4 Posts
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    Tiggy748
    • #4
    • 16th May 19, 6:16 PM
    • #4
    • 16th May 19, 6:16 PM
    I've overpaid as they based my contributions on my employed earnings of 20k, when I only earnt 8k overall
    • Tiggy748
    • By Tiggy748 16th May 19, 6:18 PM
    • 4 Posts
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    Tiggy748
    • #5
    • 16th May 19, 6:18 PM
    • #5
    • 16th May 19, 6:18 PM
    I've only paid NI through employment as I knew I'd make a loss.

    So if I can't reclaim how do I stop it from happening next year, if the same situation arrises?
    • molerat
    • By molerat 16th May 19, 6:55 PM
    • 20,626 Posts
    • 14,894 Thanks
    molerat
    • #6
    • 16th May 19, 6:55 PM
    • #6
    • 16th May 19, 6:55 PM
    I've only paid NI through employment as I knew I'd make a loss.

    So if I can't reclaim how do I stop it from happening next year, if the same situation arrises?
    Originally posted by Tiggy748
    You have not overpaid, your contributions were correctly based on each pay packet. If you earn enough in employment you pay NI. The only way not to pay NI is to earn under 166 per week / 719 per month. Your SE losses are of no relevance to your employed pay as far as NI is concerned.
    Last edited by molerat; 16-05-2019 at 6:59 PM.
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    • agrinnall
    • By agrinnall 17th May 19, 7:40 AM
    • 22,627 Posts
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    agrinnall
    • #7
    • 17th May 19, 7:40 AM
    • #7
    • 17th May 19, 7:40 AM
    If your business has made a 12,000 loss, and may have similar losses this year, shouldn't you be considering giving up self employment? And if you do decide to continue then you should make an effort to educate yourself on how tax and NI work so that you don't end up in a financial mess.
    • Pennywise
    • By Pennywise 17th May 19, 8:17 AM
    • 11,509 Posts
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    Pennywise
    • #8
    • 17th May 19, 8:17 AM
    • #8
    • 17th May 19, 8:17 AM
    You get NIC relief against self employment losses against future profits.

    So, if next year, you make a s/e profit of 30,000, you can bring forward and set off the 12,000 s/e loss and only pay NIC on the balance of 18,000 s/e profit. But as you've already used the 12,000 loss for income tax against employment income, you'd pay income tax on 30,000 s/e profit next year.

    Loss relief for tax and NIC works in different ways - they're completely different. You have different profit/loss "streams" to deal with losses. For NIC, losses can only ever be set against future profits of the same trade, not sideways or backwards like they can be used for income tax.
    • Tiggy748
    • By Tiggy748 17th May 19, 2:29 PM
    • 4 Posts
    • 0 Thanks
    Tiggy748
    • #9
    • 17th May 19, 2:29 PM
    • #9
    • 17th May 19, 2:29 PM
    Try not to judge in future please. My losses have been based on training and setting up a UK wide research project that will save lives. This is envloves expenditure which came from my own pocket not a bank with a potential 800k plus income in a few years. Quite frankly if you can't understand how a business can make a 10k loss for 2 years and see that as reason to give up its perhaps a good idea not to comment on self employed threads.
    • uknick
    • By uknick 17th May 19, 4:21 PM
    • 927 Posts
    • 408 Thanks
    uknick
    If you are expecting income of over 800k in a few years, which I assume will be over a few years based on what what you just posted, will you be setting up a Ltd company to be more tax efficient?
    • BoGoF
    • By BoGoF 17th May 19, 5:37 PM
    • 4,381 Posts
    • 3,920 Thanks
    BoGoF
    Try not to judge in future please. My losses have been based on training and setting up a UK wide research project that will save lives. This is envloves expenditure which came from my own pocket not a bank with a potential 800k plus income in a few years. Quite frankly if you can't understand how a business can make a 10k loss for 2 years and see that as reason to give up its perhaps a good idea not to comment on self employed threads.
    Originally posted by Tiggy748
    Your assumption that you would get a refund of employee NIC would suggest your understanding of tax is not as great as you think it is.....which leads me to question whether all yoir expenditure is allowable.
    • Pennywise
    • By Pennywise 17th May 19, 5:49 PM
    • 11,509 Posts
    • 22,197 Thanks
    Pennywise
    You need to check whether the training is allowable for tax. If it's for new skills/qualifications for yourself, then it's highly unlikely to be allowable. The general rule is that only refresher courses are allowable.
    • agrinnall
    • By agrinnall 17th May 19, 7:36 PM
    • 22,627 Posts
    • 18,621 Thanks
    agrinnall
    You're sounding like the sort of person who gets torn to shreds on Dragon's Den for completely overestimating the future value of your business and not understanding the figures you have so far. Good luck, but as they would say, I'm out.
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