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Say goodbye to small earnings

Say hello to small profits

HMRC has changed the name of the threshold for paying Class 2 National Insurance from the Small Earnings Limit to the Small Profits Threshold.  If you earn less than £5,965 in 2015-16 you won’t need to pay Class 2 NI, but if you do, it will be calculated as part of your 2015-16 tax return and due with the rest of your tax by 31st January 2017.

English: British National Insurance stamp.

English: British National Insurance stamp. (Photo credit: Wikipedia)

Alterledger can help

For more information on filling in your tax return, contact Alterledger or visit the website alterledger.com to see if you can organise yourself better and cut your tax bill.
 

Self Employed National Insurance

Changes to payment of National Insurance

HMRC has announced changes to the way that the self-employed will pay their Class 2 and Class 4 National Insurance Contributions (NIC).  This is not the first time the process has changed.  Some people still refer to paying their stamp – in days of old you had to buy special stamps for your NIC!

English: British National Insurance stamp.

English: British National Insurance stamp. (Photo credit: Wikipedia)

No new direct debits

Until recently I would have encouraged the self-employed to set up a Direct Debit Instruction (DDI) with HMRC to pay their Class 2 NIC.  From April 2015 HMRC will calculate the NIC due from your self-assessment tax return.

Deferment of National Insurance Contributions

If you currently defer NIC, you don’t need to re-apply to do so.  HMRC will be sending out letters in December to everyone who currently defers NIC to confirm this.  Any new applications to defer NIC will not be processed.  For more information on National Insurance for the Self Employed please go to my blog post here: Class 2 NIC.

Alterledger can help

For more information on filling in your tax return, contact Alterledger or visit the website alterledger.com to see if you can organise yourself better and cut your tax bill.

 

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