Why can't we defer class 4 NI?

[Bythebook]

Hiya folks, I'm both employed and self-employed which means that I pay class 1,2 and 4 NI.

Because I earn over £4189 a month in employment, and over £50270 a year in self-employment, I'm paying the double digit NI percentage (up to the respective thresholds) for both class 1 and 4 NI. This seems really unfair.

According to this, somewhat dated article (https://www.jonathanford.co.uk/nati...fer-class-4-national-insurance-contributions/), HMRC should let me know after I've submitted a return if I'm due a NI refund. However I cannot find any official documentation on this.

Anyone know what the situation is?

 

[UK Contractor Accountant]

Check how to claim a National Insurance refund

Find out how to claim a refund on the National Insurance (NI) you’ve paid to HM Revenue and Customs (HMRC).

www.gov.uk

 

[Bythebook]

Check how to claim a National Insurance refund

Find out how to claim a refund on the National Insurance (NI) you’ve paid to HM Revenue and Customs (HMRC).

www.gov.uk

In this case, would I be claiming for class 1 or 4 NI refund?

 

[UK Contractor Accountant]

4 and 2 if you have paid the max NI for year via class 1 NI on salary.

 

[Bythebook]

4 and 2 if you have paid the max NI for year via class 1 NI on salary.

Thanks

 

[Adam93]

As it is Class 4 NIC, this will be resolved when completing your tax return. Instead of charging 9% (now 10.25%), you should see 2% (now 3.25%) class 4 NIC on your tax return.

Have you completed your tax return correctly and included the employment income as well as your self-employed income?

 

[MyAccountantOnline]

Slightly off topic but have you considered transfering your business to a limited company? A limited company pays no NIC on profits. Lots of considerations but for someone such as yourself with other income it can be a good tax (and NIC) saving.