United Nations IPSA Contract

[jamesbrown]

I thought I highlighted the important bit so we didn't have to go down the VAT rabbit hole?

You may have thought so (and for that reason) . However, we cannot see the contract and self-employed people must register for VAT when they first know that they will exceed the threshold.

[Bluebird]

Ok, so speaking to someone who is already on one of these.

Their opinion is that you get paid a wodge of cash in dollars based on a monthly rate, you then take care of tax your end.

This to me seems strange - I can see how I can account for income tax as part of self assessment perhaps, but that doesn't take account of NI.

[ladymuck]

Ok, so speaking to someone who is already on one of these.

Their opinion is that you get paid a wodge of cash in dollars based on a monthly rate, you then take care of tax your end.

This to me seems strange - I can see how I can account for income tax as part of self assessment perhaps, but that doesn't take account of NI.

So you'll be self-employed in HMRC terms, so this is where you need to look:
https://www.gov.uk/self-employed-nat...nsurance-rates

You'll pay it via self-assessment

[Bluebird]

So you'll be self-employed in HMRC terms, so this is where you need to look:
https://www.gov.uk/self-employed-nat...nsurance-rates

You'll pay it via self-assessment

Thanks - thats exactly the info I was looking for!

[Bluebird]

Do i assume that on that link that HMRC have got a word wrong:

You usually pay 2 types of National Insurance if you’re self-employed:

• Class 2 if your profits are more than £11,908 a year
• Class 4 if your profits are £11,909 or more a year

Should class 2 be LESS than 11908?

[jamesbrown]

No, the wording is correct as of 2022/23, if a bit clumsy. It's moving to both being aligned with the income tax threshold in 2023/24.

[Bluebird]

No, the wording is correct as of 2022/23, if a bit clumsy. It's moving to both being aligned with the income tax threshold in 2023/24.

Don't get it - they both mention a value being applied if OVER a specific figure - but the figure is the same bar £1.

So if my profits are less that £11,908 a year - I pay nothing?

If my profits are £30k - do I pay £3.15 a week, or 9.73% of £19,092 ( £0 - 11908 ) or both?

[ladymuck]

Don't get it - they both mention a value being applied if OVER a specific figure - but the figure is the same bar £1.

So if my profits are less that £11,908 a year - I pay nothing?

If my profits are £30k - do I pay £3.15 a week, or 9.73% of £19,092 ( £0 - 11908 ) or both?

Both. The first sentence says "two classes of NI are paid". The class 4 kicks in at £1 higher than class 2.

Agreed, it makes very little sense.

I'm sure there's historical documentation somewhere explaining why someone thought it was a good idea.

[jamesbrown]

Don't get it - they both mention a value being applied if OVER a specific figure - but the figure is the same bar £1.

So if my profits are less that £11,908 a year - I pay nothing?

If my profits are £30k - do I pay £3.15 a week, or 9.73% of £19,092 ( £0 - 11908 ) or both?

As far as I can see, it's just clumsy phrasing with a > £11,908 and >= £11,909, both of those being practically the same. As I said, they are moving both to the income tax threshold in the next tax year. But as LM says, it's both.