- Original Poster
- #1
Hi,
Please could someone clarify NIC 4 for me?
I understand that NIC 4 is 8% payable on profit of circa £5k+ per annum (I do have the exact figure somewhere).
I've just become self-employed, currently working for a company who are paying me a fixed monthly fee for 3 months' work. I pay all my business costs out of this monthly fee (a relatively low amount, as I work from home, I don't have stock etc...). Anything that is left after these expenses I take as my salary. This means I make £0 profit after I've paid myself - though how much I earn depends on my expenses for each particular month.
Am I correct in thinking I don't have to pay NIC 4, as I have no profit after I have paid myself?
Or do I just deduct my business costs from my monthly fee, then pay NIC 4 on what is left (which is essentially my salary)?
Is it ok for me to pay myself whatever amount is left-over after my expenses, or does this just look like I'm trying to avoid paying NIC 4? :|
Thanks,
Please could someone clarify NIC 4 for me?
I understand that NIC 4 is 8% payable on profit of circa £5k+ per annum (I do have the exact figure somewhere).
I've just become self-employed, currently working for a company who are paying me a fixed monthly fee for 3 months' work. I pay all my business costs out of this monthly fee (a relatively low amount, as I work from home, I don't have stock etc...). Anything that is left after these expenses I take as my salary. This means I make £0 profit after I've paid myself - though how much I earn depends on my expenses for each particular month.
Am I correct in thinking I don't have to pay NIC 4, as I have no profit after I have paid myself?
Or do I just deduct my business costs from my monthly fee, then pay NIC 4 on what is left (which is essentially my salary)?
Is it ok for me to pay myself whatever amount is left-over after my expenses, or does this just look like I'm trying to avoid paying NIC 4? :|
Thanks,
