I've been a freelance web designer for a month. I signed up as self employed with HMRC. So far i have earned £300 and expecting another £300. When it comes to paying tax and national insurance contributions, i know i pay taxes with a tax return form. How do i pay national insurance contributions? Honestly, this is all confusing. Can a fellow web designer walk me through this process?; i don't want to get in trouble not paying at the right time. I've already filled in the self assessment form at the HMRC website, i'm expecting them to send me a Unique Taxpayer Reference number. I have many other projects coming up and i want to be up to date on the business side of things.

 

Any help greatly appreciated.

 

If i don't have any work for a month do i still pay Class 2 national insurance contributions for that month?

 

I signed up on the HMRC site ( Government Gateway I think ?) and they sent me the id to log in etc.

 

They also sent me a letter asking me for NI contributions which I paid online. It could also have been paid at a bank or post office. It covered a certain time period for which they reckoned I owed contributions.

 

As I understand it, I will be sent another invoice (for want of a better word) when the next payment is due - although I could have set up a direct debit - and I will have to keep paying unless I tell them I'm no longer self employed. Although it is possible to apply for a Small Earnings Exception if I expect to earn less than £5885 in the next tax year.