Nic Class 4 (8%)

[goodgrief]

Accounts package 08-09

Hi, I am having difficulty of unprotecting the spreadsheet in Financialaccounts 050409.

The cell I am interesting to reset to 0 is N20.

I already work full-time on PAYE so is it true that I will be paying NIC class 4 on my profits on my part-time business? If, so then cell N20 needs to be 0?
Please correct me if I am wrong.

Thanks for your help

[uejorj]

The amount of NI you pay on your self employment really depends on the earnings from your PAYE job, if the income exceeds around £40,000 pa then you are likely to be close to the maximum Class 1 NI and in this case you need to apply to HMRC for deferment of additional Class 4.

However if you are operating a sole trader business (eg your part time business) then you should be registered as a sole trader, and you should be paying class 2 NI of £2.30 pw and you will be liable for class 4 NI in the event that your profits are £5436 or higher, but as stated above if your PAYE income is at the maximum level then Class 4 is not payable.

If your part-time profits are under £4825 pa then you can apply for Small Earnings Exemption, which means you will not pay Class 2 either.

The above figures apply to 2008-2009 and will no doubt change for 2009/2010 tax year.

Rgds

John

[goodgrief]

Thank-you so much...that information is very helpful