Paying Class 2 and Class 4 NIC

[ASB]

You certain you are self employed?

the typical user of this forum isn't.

if you are genuinely self employed then you should register. You can do this from their website.

if you s/e income is low you can get a class 2/4 exemption. This had to be done through long benton and was a pain but I think it is nowdone through self asessment.

[TheCyclingProgrammer]

Your NIC will be paid via self assessment and your first will be due for the current tax year next January, where you will pay your tax and NIC for 2015/16 and your first payment on account for 16/17 with the second in July 2017.

If you've not done so already you have until Oct 5 to register with HMRC as self employed and for self assessment.

I've phoned them twice on this already and it hasn't been explained clearly. I will wait to get my accountant and remember to avoid your epic attitudes, thanks for nothing.

[northernladuk]

He hasn't got the hang of telling people to speak to their accountants but he's got promise...

[SueEllen]

Wow user with low post count saying how it is!

Welcome!

[drumtochty]

Why do you not phone up HMRC,their phone number is on the web and ask?

If they guide you, you are getting info from the horses mouth!

It like on Car Forums when peoples new cars go wrong they moan on the forums and say how does this get fixed.

You contact the garage who does the warranty work.

So less posting and more phoning to a human in HMRC.

Or is that being uncooperative stating the obvious

[miriamisms]

Hello! I am new to the forum and new to being self-employed in the UK, though I've done it previously abroad.

I am looking for clarification regarding Class 2 and Class 4 NICs. I was reading through this page: How to work out tax and NI | Start Up Donut and the part about the limits has confused me. I have not yet earned the £8060 threshold amount for Class 4 NIC. Does this mean I don't have to worry about setting aside the money for that yet? Or is it that when I go over the threshold, I have to make sure I've set aside the 9% of that £8060 and anything else I earn going forward? I'm aware that once I go just over £10k I have to set aside money for income tax. In sum am I looking at 29% (NIC and income tax) and then the additional money to pay for Class 2? I've asked because I've seen income tax percentage rates listed as 22% or 25% etc. I know the finer points are better discussed with an accountant, but I'd like to get a rough estimate from your experience about how much to set aside until I can hire an accountant and get the steps going forward from them.

Also, I am very confused about when these moneys are paid. The NICs are paid January and July from what I understand, but as I just started my business this January, do I only pay for whatever I've earned over the threshold in July? What if I have not earned over £8060 by July? I understand income tax doesn't get paid until 2017.

Thanks for any and all assistance for this newbie! M