Self Employment Status Help

[Stealth549]

Hello,

I am looking for some advice.

I am currently registered as self employed and have been for about 2 years now.

However I haven't needed it for about at least a year. I have kept it running because I haven't paid any NI from that for about a year and a half.

During that time I've been on PAYE and been paying TAX and NI that way.

I am now looking to cancel self employment status to stop the NI Bills and I am really looking for advice as to where I stand with the NI bill and what the process is to cancel.

Thanks

 

[paulears]

My understanding is that you should have been paying class 2s all the time, but if you weren't trading and didn't make any profit, there would be no class 4s - your paye class 1s . Once you give up your self-employed status, you should be able to cease the class 2s.

When you have split employment like this, an accountant is a sensible move to trade one off against the other.

 

[taxattack]

Hello,

I am looking for some advice.

I am currently registered as self employed and have been for about 2 years now.

However I haven't needed it for about at least a year. I have kept it running because I haven't paid any NI from that for about a year and a half.

During that time I've been on PAYE and been paying TAX and NI that way.

I am now looking to cancel self employment status to stop the NI Bills and I am really looking for advice as to where I stand with the NI bill and what the process is to cancel.

Thanks

There is no liability to Class 2 NI for periods when you were not a "self-employed earner". If your self-employment ceased, you would identify this on your self-assessment tax return. It may be worth confirming this separately with the NI Contributions Office.

Chris

 

[Philip Hoyle]

Write to the NIC office (not your usual tax office) - make a claim for the small earnings exception which should stop future demands and also ask for a refund of class 2 NICs paid for the current tax year and also for the 09/10 tax year - best to send them a copy of your s/e pages of the tax return to prove you had no s/e income for that year. There is a time limit for refunds of NICs already paid, so don't delay.