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Where Taxpayers and Advisers Meet

NIC advice needed

Posts: 4
Joined: Fri Jan 26, 2018 1:59 pm

NIC advice needed

Postby MichaelsTax » Fri Jan 26, 2018 2:23 pm

I'm filling in the on-line self assessment form for 2016-17 and think I am going wrong somewhere. I'm semi retired and I work at home in the UK on an as-needed basis for an overseas engineering company. I might have 10 hours work one week and none the next etc.
I earned £13,479 in the 2016-17 tax year, and I had £518 expenses which, with my tax-free allowance of £11,000 meant I am taxable on £1961. The on-line Form is calculating my income tax as £392 which I think is correct, and also shows me liable for Class 2 NIC's of £145.60 and Class 4 NIC's for £586.69. This is giving me a total deduction for tax & NIC's of £978.89, which seems a bit high on my earnings. Do these NIC contributions look correct?
Any advice is much appreciated.

Posts: 3168
Joined: Sat Feb 01, 2014 3:26 pm

Re: NIC advice needed

Postby bd6759 » Fri Jan 26, 2018 8:10 pm

Class 2 is a flat rate £2.80 per week. Class 4 is 9% above £8060. The class 4 figure looks wrong.

Posts: 2958
Joined: Wed Aug 06, 2008 4:01 pm

Re: NIC advice needed

Postby robbob » Fri Jan 26, 2018 9:05 pm

The overall total figure is correct 978.89 - Note OP you have quoted 586.69 as the class 4 NI when 586.09 is the total of class 4 and class 2 - the class 4 is 441.09.

when the powers that be congratulate themselves for increasing the personal allowance by £500 they say diddly squat about the NI free amounts increasing by diddly squat :(

Posts: 4
Joined: Fri Jan 26, 2018 1:59 pm

Re: NIC advice needed

Postby MichaelsTax » Mon Jan 29, 2018 11:44 am

Thanks to both for the replies :)

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