Employed & Self Employed?

[atomfun]

Hello all

I'm employed full-time in the public services sector/council. My employer determines my tax & NIC so I've never had to concern myself with it.

About 2 years ago, my partner & I started a small side-line business that's more a hobby than anything else, it generates less than £100pm which goes back into buying bits & pieces for the hobby. Do I have to pay self-employed NIC?

The reason I ask is because I've just received a calculation from HMRC for the period 2005 to present amounting to £770 - strange!

Many thanks

John

[Tax Champion]

As a self employed person you have to pay Class 2 NIC which is currently £2.50 per week. If your profits are less than £5,315 (2011/12) then you can apply for small earnings exception. I am assuming that the National insurance bill you have is for Class 2. You should therefore contact the National Insurance Office explaining that you only started 2 years ago and the amount of profit you have earned. They will no doubt request forms are completed.
I am assuming you have completed self assessment tax returns.

[tax_schmax]

Can anyone confirm if the Self Employed small earnings limit is for the self employed earnings only and taken in isolation from the employed earnings.

[mullet]

Can anyone confirm if the Self Employed small earnings limit is for the self employed earnings only and taken in isolation from the employed earnings.

You are correct.

[tax_schmax]

Thanks.