NI contributions
Thread poster: clairetransl (X)
clairetransl (X)
clairetransl (X)
United Kingdom
Local time: 11:13
French to English
+ ...
May 6, 2013

Hi everyone,

Just a quick question about NI contributions...I've received a letter and tax return form from HMRC, but no mention has been made of NI contributions. I registered as self-employed in February and have been invoicing clients monthly since then. I haven't received any letters/e-mails about contributions or requests for payment. I'm sure I'm supposed to pay some contributions for the last quarter of 2012/13. Are they now part of the tax return or have I missed something?


 
Hazel Underwood
Hazel Underwood  Identity Verified
United Kingdom
Local time: 11:13
Member (2005)
German to English
+ ...
Class 2 and class 4 payable May 6, 2013

Hi Claire,

There are two types of NI you should be paying.

Class 2 you should be paying on a weekly/monthly basis, around 10 pounds a month I think.

Class 4 is the NI you pay on your profits through your tax return, basically a fixed percentage, although can't quite remember what that is.

So you really need to ring up your tax office to sort out setting up a direct debit for your class 2 contributions at least.

Hope that helps!
... See more
Hi Claire,

There are two types of NI you should be paying.

Class 2 you should be paying on a weekly/monthly basis, around 10 pounds a month I think.

Class 4 is the NI you pay on your profits through your tax return, basically a fixed percentage, although can't quite remember what that is.

So you really need to ring up your tax office to sort out setting up a direct debit for your class 2 contributions at least.

Hope that helps!

Hazel
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clairetransl (X)
clairetransl (X)
United Kingdom
Local time: 11:13
French to English
+ ...
TOPIC STARTER
Setting up NI May 6, 2013

Hazel Underwood wrote:

Hi Claire,

There are two types of NI you should be paying.

Class 2 you should be paying on a weekly/monthly basis, around 10 pounds a month I think.

Class 4 is the NI you pay on your profits through your tax return, basically a fixed percentage, although can't quite remember what that is.

So you really need to ring up your tax office to sort out setting up a direct debit for your class 2 contributions at least.

Hope that helps!

Hazel


Hi Hazel,

Thanks for replying. It's a bit odd that HMRC don't let people know what/when/how they need to pay...I was trying to avoid phoning them as I'm currently abroad, but I might have no option!


 
Maaike van Vlijmen
Maaike van Vlijmen  Identity Verified
Netherlands
Local time: 12:13
Member (2009)
Italian to Dutch
+ ...
I got a letter May 6, 2013

Hi Claire,

After I'd registered with the HMRC I got a letter with the amount I had to pay. It took a couple of months though, so I wouldn't worry about it. As long as you're sure you're registered, they will find you
If you want to be sure, you should call!
All the best

Maaike


 
Hazel Underwood
Hazel Underwood  Identity Verified
United Kingdom
Local time: 11:13
Member (2005)
German to English
+ ...
Write a letter May 6, 2013

Hi Claire,

If you're abroad I can understand your reluctance to ring them!

Chances are they would send you something eventually anyway, but for peace of mind I'd recommend you send a letter.

Kind regards,

Hazel


 
Tom in London
Tom in London
United Kingdom
Local time: 11:13
Member (2008)
Italian to English
Don't call May 6, 2013

Hazel Underwood wrote:

Hi Claire,

If you're abroad I can understand your reluctance to ring them!

Chances are they would send you something eventually anyway, but for peace of mind I'd recommend you send a letter.

Kind regards,

Hazel


I wouldn't advise trying to call HMRC. Their telephone response times (if they ever reply at all) are so bad that they were recently given a severe grilling by a Parliamentary Committee and told to shape up. They were also told to stop using a premium-rate 0845 number.

The last time I tried to call HMRC I was kept waiting for nearly an hour, and when I did get through the person to whom I spoke was unable to answer my question.

As for your NI contributions, don't worry. If HMRC has your National Insurance number and you're registered as self-employed, they will calculate how much you owe and include it in the amounts you need to pay as tax. Maaike is correct: they will (eventually) send you a letter that explains it all. Until then, my advice would be to just wait. You're not doing anything wrong.

If you really want personal advice, I would suggest contacting an accountant - not HMRC.

For the record:

Margaret Hodge MP, Chair of the Committee of Public Accounts, said:

“HMRC’s ‘customers’ have no choice over whether or not they deal with the department. It is therefore disgraceful to subject them to unacceptable levels of service when they try to contact the department by phone or letter.

“In 2011-12, 20 million phone calls were not answered. It cost the callers £136 million while they waited to speak to an adviser. And, against its target of responding to 80% of letters within 15 days, the department managed to reply to just 66%. This is an abysmal record."

And so on. To read the full report, see http://tinyurl.com/c427dyx

[Edited at 2013-05-06 21:40 GMT]


 
clairetransl (X)
clairetransl (X)
United Kingdom
Local time: 11:13
French to English
+ ...
TOPIC STARTER
Do I have to pay NI? May 27, 2013

Update: I've now received the letter asking me to pay Class 2 NIs for the last quarter of the last tax year, 2012/13. Is it too late to apply for a Small Earnings Exemption certificate? The letter only mentions the exemption for 2013/14.

 


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