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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If I make £28,000 income a year and £10,000 of that is from

Customer Question

If I make £28,000 income a year and £10,000 of that is from being self employed, how much National Insurance do I have to pay?
Submitted: 1 month ago.
Category: Tax
Expert:  TonyTax replied 1 month ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 month ago.

Is the £18,000 income as an employee?

Customer: replied 1 month ago.
OK great
Expert:  TonyTax replied 1 month ago.

For 2016/17, you will pay £174.60 in Class 4 NIC and £145.60 in Class 2 NIC on self-employment profits of £10,000. Take a look here for the rates and thresholds.

If the £18,000 is income as an employee, you will pay £1,192.32 in Class 1 employee NIC.

I hope this helps but let me know if you have any further questions.

Customer: replied 1 month ago.
a bit.
Here's the situation.
I would earn 18k through private rent and trust income and 10k through working self employed.
Is it correct ot assume that I do not need to pay National Insurance on the 18k but only on the 10k.
I need to pay income tax on the total income of 28k? Just wanted to confirm this all
Expert:  TonyTax replied 1 month ago.

In that case, you won't pay NIC on rental income and trust income.

The first £11,000 of your total income in 2016/17 will be tax free and you will pay tax at 20% on £17,000, assuming the rental income is net of deductible expenses.

Customer: replied 1 month ago.
OK that's very clear, thank you - one final query.
Let's say my total income is £34,000
18,000 from private rent and trust income.
10,000 from self employed work
6,000 from 'being an employee' workMy understanding is that i would pay no NI on the 18,000, I would pay £320.20 on the 10.000? What rate would I pay on the 6,000?Assuming 32,000 was taxable. After the 11,000 allowance that makes 21,000 taxed at 20%. That is tax of 4,200 resulting in a net of 27,800. I hope this is correctIs there a way of putting trust income or rental money directly into an ISA to avoid tax or not?
Expert:  TonyTax replied 1 month ago.

On £6,000 employee income, you would pay no NIC.

Your tax figure of £4,200 and the net income figure are each correct.

Expert:  TonyTax replied 1 month ago.

If any of the trust income is dividends, then a different rate of tax will apply. Look here for more information.

Customer: replied 1 month ago.
what rate of tax would apply for the trust pay outs?
Why is the 6k as an employee no NIC? Is it because you assumed the 6k was take home pay that they'd calculate?
Expert:  TonyTax replied 1 month ago.

Look under the heading "If you're employed" here. You pay £12% employee NIC on earnings between £155 and £827 per week.

UK trust income tax is charged to the trust on the trust's income at different rates depending on the type of trust and the type of income as you can see here. In your hands, the income is taxed differently. Interest and rentla income will be taxed at 20%. Dividends in excess of £5,000 will be taxed at 7.5%.

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