[Lovelock]

Hello, about to go out so dont have the time to ring HMRC atm.

Just wondered if anyone can shed some light.

Back in august or so, i registered as being self employed.

I was under the impression that i didn't need to pay tax till april 2012 when i fill out my self assesment?

However this morning i got a letter asking for £32 of class 2 tax.

If i fill out the application for low income, to earn under 5k and therefore free from tax, do i still have to pay this £32 or will they wipe it clean?

So confusing all this stuff, when do i fill out a self assesment etc? Im going to start trading beginning of next month.

Thanks, Craig.

[roothost]

That would be class 2 National Insurance, not income tax/self employment tax, thats seperate.

Basic class2 NI is about £2 a week.

[pilgrim_fgau]

roothost, on 22 October 2011 - 06:25 PM, said:

That would be class 2 National Insurance, not income tax/self employment tax, thats seperate.

Basic class2 NI is about £2 a week.

x2

[Jason Dexter]

You pay class 2 national insurance no matter what, and it's around 2.50 a week. These can be paid by direct debit or you'll get a letter every 3 months or 6 months to pay for it.

You're on about class 4 national insurance which you pay at the end of the year based upon what you've earned over the threshold


Regardless of what you earn, you'll always pay class 2

[Lovelock]

Apparently not, at the bottom of the form for saying i want to be exempt from tax gives me the option to voluntary pay class 2.

[roothost]

Lovelock, on 22 October 2011 - 11:00 PM, said:

Apparently not, at the bottom of the form for saying i want to be exempt from tax gives me the option to voluntary pay class 2.

You would be very silly not to pay voluntary class 2 NIC. By deciding not to pay and applying to be excempt due to low earnings can affect any benefit claims in the future. Not just job-seekers, but many benefits that everybody is entitled to such as working tax credits and, in years to come, your pension.

For the sake of a few quid a week, pay it lol.

[Glowbridge]

You could find £2 on the street every week. Pay it.

[Lovelock]

But I have a 2nd job. I'm only self employed in my spare time... Wont I be paying the tax from that?

[zed]

ring HMRC and ask them what it's about. It could solve a whole heap of speculation.

[Sinero Web Design]

http://www.hmrc.gov.uk/rates/nic.htm 

You can apply for an exception if you earn less than £5,075 in your second income but you need a signed declaration from a tax inspector. You can apply for one online.