NI paid via employer payroll - now self employed?

[cmno1973]

Hi I have recently been topping up my working hours with an employer of 15 hours, and doing an extra hour or two a week as self employed. I have only recently started doing this and have a tax return to complete. However, what I earn for the hour's extra self-employed work doesn't even cover my petrol expenses as it is work for a friend as a favour really. (On average I get about £5 a week)

I was told I had to set myself up as self employed and fill in a tax return for year ending April 2009. However I have received a bill for National Insurance at £2.30 per week however I have been paying £2.30 through my wages with my employer for NI - it seems to me that I am being having to pay twice? Do you think this is so?

[RAL]

There is small earning exemption if you are earning less than £5,075.00. Ring tax office they would be able to send you one fill it in and send it off to them.

I am not convinced that you being self employed. Sometimes it can be trick if you are employed and self employed for the same person/business. Also if you are doing just one hour a week, why don't you get paid via payroll? Saves you all hassle with self assessment return and etc.

[cmno1973]

Having re-read my post I realise it's misleading you to thinking I work self-employed for the same company! Sorry.

To make it clearer my self-employed hours work is completely separate to the employed work. I work for my employer for 15 hours and 1 hour for myself. Which is why I have to declare what I earn for just the 1 hour a week!

[RAL]

No problem.

You can apply for "Small Earning Exemption" as I mentioned in my previous, so you do not need to pay Class 2 NI. However, once your earning is above £5,075, then you have to pay class 2 NI as well as via your employment.

You also have to pay Class 4 ni on your profit too.

However, if you have paid more than maximum ni payable, you can receive the refund. This would be where someone is paying full ni via employement.