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TaxRobin
TaxRobin, Tax Consultant
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Experience:  International tax
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Hi, please can you help me regarding National Insurance/tax I

Resolved Question:

Hi, please can you help me regarding National Insurance/tax

I am going to be working for a company on a adhoc basis doing contracting work, initially it will start off with 1 day a week being paid £311 per day...I need to know how much national ins/tax I need to pay snd how I go about it please.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
If you're self-employed you normally have to pay Class 2 National Insurance contributions. If you are under a contract for services then you are self employed.

Generaly, you pay Class 2 National Insurance contributions at a flat rate of £2.75 a week. You (based on the amount you stated), will be over the Class 2 amounts and will register for Class 4. You can register for Class 2 National Insurance contributions when you register for business taxes with HM Revenue & Customs (HMRC).
If you file your return online, your Class 4 National Insurance contributions will be worked out for you automatically. You work out your Class 4 National Insurance contributions on your Self Assessment tax return and pay them alongside your Income Tax.
The amount of Class 4 National Insurance contributions you have to pay for any tax year is based on your profits for that year. You pay 9% on annual profits between £7,956 and £41,865 (2014 to 2015) and 2% on any profit over that amount.
Customer: replied 3 years ago.

Sorry, I am new to contracting...so please can you clarify is is level 2 or level 4 national insurance I pay?


 


Which website do I need to register to pay for this please?


 


Still confused on the tax element, how much tax do I pay and how do I go about paying this?

Customer: replied 3 years ago.

So sorry, but I am new to contracting and I need clarity is it level 2 or level 4 national insurance I pay? What website do I need to register to pay for this.


 


iI am confused on the tax element, how much do I pay and how?


 


Sso sorry to ask, but need simple clarity around this, thank you

Customer: replied 3 years ago.

Please see the below questions which need further clarity on


 


 

Expert:  TaxRobin replied 3 years ago.
Do not know what happened to my lengthy response but I will duplicate it here again.

You are Class 4. That is because you will earn over the limit for Class 2.
You will be paying the 9% rate.
You must tell HMRC that you are self employed now.
http://www.hmrc.gov.uk/selfemployed/

The above url will take you to the page for HMRC to register.
TaxRobin and other Tax Specialists are ready to help you
Expert:  TaxRobin replied 3 years ago.
If you're self-employed, you are responsible for paying your own tax and National Insurance contributions. You'll need to keep business records and details of your income so you can fill in an annual Self Assessment tax return.
Customer: replied 3 years ago.

How much income tax do I pay?

Expert:  TaxRobin replied 3 years ago.
Hi,
So sorry about any previous glitch.
HMRC uses the information on your tax return about your self-employment income to work out your tax and National Insurance.
You will be allowed to claim any expenses that you may have. Your tax-free personal is still allowed and the you would pay income tax on the remaining amount.
You will pay Class 4 NIC. The 'lower profits limit' for paying Class 4 National Insurance is £7,755, so you would pay 9% on your profit - £7,755 = £NIC.
This is all worked out on your return when you complete.