Class 4 NI for part year ?

[mathew5925]

My earnings for the first half of 2008-09 as self employed were £37119...Apr to Sep 08

After becoming employed my earnings between Oct 08 and Mar 09 were taxed by my employer in the normal way.

My self assessment tax calc shows "Class 4 NI contributions £31684 @ 8% = £2534.72 "

...but as this was earned in six months should the bands be adjusted accoringinly ie

Full Year 08-09
0% 5435
8% 34605
1% the rest

Half Year 08-09
0% 2718
8% 17303
1% the rest

...thus making the tax for the year
£17303 @ 8% = £1384.20 plus
£17099 @ 1% = £170.99
total £1555.19

...£979.53 less?

[Vanilla Slice]

Class 4 is payable on a fiscal year basis. You made the profit in2008/09, you pay the NIC due for that year.

[RAL]

You may need to do annual maxima calculation for the NIC. As you have self employed and employment income, you there is a formula for to pay maximum nic.

[mathew5925]

Thanks for the replies, however the answer appears to be "Deferment of National Insurance contributions" and filling in form CA72B

[RAL]

You may need to do annual maxima calculation for the NIC. As you have self employed and employment income, you there is a formula for to pay maximum nic.

Thanks for the replies, however the answer appears to be "Deferment of National Insurance contributions" and filling in form CA72B

Have a read on following link to notes to the form CA72B. Particularly introduction. It says more or less what I said that you need to do annual maxima calculation.

http://www.hmrc.gov.uk/nic/ca72b_notes_12_08.pdf

What this form would do that you do not have to pay nic until HMRC does calculation.

"you can ask to defer some of your Class 2 and/or Class 4 NICs
until we can calculate the correct amount of NICs due after the
end of the following tax year."

[mathew5925]

Class 4 is payable on a fiscal year basis. You made the profit in2008/09, you pay the NIC due for that year.

wrong.......