Self-Employed + Full-Time Employed N.I. Contributions

[traxor]

As per the title, I'm wondering what I have to do about National Insurance contributions now that I'm employed full-time at a digital agency? Do I still have to pay Class 2 N.I.Cs or is it okay that I'm paying N.I.Cs through where I work?

I need to know because I'm remaining self-employed for the foreseeable future. I still pay monthly hosting fees, make changes to sites etc and will be paying taxes for as long as I can see when it comes to self-employment.

 

[Jaykay]

Sorry, but you need to carry on paying Class 2 NI whilst paying Class 1 through employment. Unless - you are not earning much (less than about £5,700) - or lots, around £30,000.

They catch you every way!

 

[traxor]

Sorry, but you need to carry on paying Class 2 NI whilst paying Class 1 through employment. Unless - you are not earning much (less than about £5,700) - or lots, around £30,000.

They catch you every way!

Ah I see, so is that £5,700 including what I earn through full-time employment or just self-employment alone?

Don't want the tax man to get me ;-)

 

[David Griffiths]

The normal rule is that you pay employed contributions based on employed earnings, and self employed contribuitons based (fairly obviously) on self employed earnings.

Self employed contributions fall into two categories. The Class 2 contribution is a flat rate (£2+ per week), but if your self employed earnings are less than £5,075, then you can apply for exemption. Class 4 contributions are 8% of earnings over £5.715.

So if your self employed earnings are below those limits, no you don't have to pay both.

The other situation is if your total NI contributions exceed the maximum that you can pay as an employee. In that case, any excess is refunded.

 

[traxor]

Okay, thank you for all your help!!

 

[elaine@cheapaccounting]

this is the form to use to apply for exemption for class 2 NI:

http://www.hmrc.gov.uk/forms/cf10.pdf