employed and self employed earnings

by **section 44** on Wed Dec 15, 2010 5:41 pm

If an employee's earnings exceed the upper earnings limit then does this mean that if he also has self-employed income profits he only pays Class 4 NICs at 1%?

by **RAL** on Wed Dec 15, 2010 10:03 pm

That is correct. You may need to do "annual maximum" calculation. The steps are in SI2001/204 reg 100 and for Class 2, SI2001/2004 reg21.

If you are using a commercial software then it may do calculation automatic for you.

by **RAL** on Wed Dec 15, 2010 10:05 pm

Or if you PM with the figures I will run the figures in my software and let you have the result.

by **section 44** on Thu Dec 16, 2010 10:43 am

Thank you. I'm not familiar with the law in this area and found what appeared to be the answer but without the supporting reasoning. Via HMRC's website I found information on deferral (which, atleast to my mind, suggest postponement) but not explanation on point (not even in the NICs manual - although I'm not familiar with it).