NIC class 4 class 2 and class 1

[mbsc]

Hi there, I have the following question if the individual is self employed and employed and earn let say 20000 from employment, pays class 1 NIC through payroll and the profit form the self employment is 10000, Is it still liable for NIC class 2 if he/she pays already class 1 through employment .Also Is he/she liable for class 4 on the net profit 8% above the threshold limit 5712 on the top? It looks like too much tax ...

 

[talkinpeace]

it's not
you only get exemption from class 4 if your class 1 is over the max contribution limit - which is on a salary of around £80,000 if I remember right

 

[Lancelot]

You will pay Class 1 NIC employee on your employment earnings and Class 2 and 4 NIC on business income.

I think you only get one allowance.

 

[elaine@cheapaccounting]

It looks like too much tax ...

It may well but that those are the rules I'm afraid

 

[MyAccountantOnline]

Hi there, I have the following question if the individual is self employed and employed and earn let say 20000 from employment, pays class 1 NIC through payroll and the profit form the self employment is 10000, Is it still liable for NIC class 2 if he/she pays already class 1 through employment .Also Is he/she liable for class 4 on the net profit 8% above the threshold limit 5712 on the top? It looks like too much tax ...

A good time to discuss with your client looking at trading via a limited company.

 

[Truemanbrown]

The blog may be helpful to you.