Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: BazaJT on 21 April 2014, 20:57:00
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For a variety of reasons[long story]I find myself having to fill out a self assessment tax return.I can follow all of it apart from the class 4 National Insurance Contributions bit.Paperwork I've found from an accountant[a few years old]show that he came up with a figure and then calculated 9% of this to arrive at a figure that was payable by me.Now I can follow the maths bit of that,what I am lost on is how the original figure was arrived at as this figure[used to then calculate what I needed to pay]appears nowhere else in the paperwork nor does it seem to bear any relation to any other figures shown.So my question is how do I arrive at a figure to calculate 9% of so I know I'm paying the correct amount?
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Don't the tax office work out what you owe after you've told them what you've earned? ....... they did when I used to have to fill one in (hitting 40% threshold was all my tax office needed to send us one)
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The tax office send me a separate bill for Class 2 NICs but from the paperwork I have it seems you have to work out the Class 4s yourself which is then added to the actual income tax you need to pay.I could very well be wrong as this is all new territory to me.
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National insurance rates are on the Inland Revenue site :y
P60/P45 will give you a starting point...
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Class 4 NICs are based on profit earned on self-employed income, IIRC, so, unless you're self-employed it's not an issue and your employer will give you a P60 showing class 2 NICs and that's all you need to know.
For self-employment, 9% of profit up to around 40K per annum and 2% above that applies, so that's probably where the figure came from.
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Payable on any profit over about £7250 or there abouts iirc :y