Clean It Up
UK Window Cleaning Forum => Window Cleaning Forum => Topic started by: H S and Son on August 14, 2011, 06:09:50 pm
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Remind me guys, and please this is not about employees but for self-employed individuals like ourselves.
Class 2 N.I. is the fixed amount that we get billed for regularly or you might have a Direct debit set up for.
But what about the National Insurance we pay along with our tax. How is that worked out please?
Thanks in advance.
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think it is 8 %
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I thought it was 9% to be honest but what is it 9% of? Whats left once tax and costs have been deducted and is there a personal allowance for it as well or is it just 9% straight off?
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It's now 9%.
It's a bit like Income tax as it's paid on "profits" above a certain amount, that amount for 2011/12 is £7,225 & up to £42,475. Plus 2% on profits above £42,475.
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Oh, & it's Class 4 NI
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It's now 9%.
It's a bit like Income tax as it's paid on "profits" above a certain amount, that amount for 2011/12 is £7,225 & up to £42,475. Plus 2% on profits above £42,475.
How does that tie in with personal allowance then?
Are you saying whatever your profits are (income minus personal allowance minus costs) you then are taxed at 20% of that. You then have a figure left and you subtract £7,225 from that and whatever is left you are taxed at 9% of that to work out your Class 4?
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It's now 9%.
It's a bit like Income tax as it's paid on "profits" above a certain amount, that amount for 2011/12 is £7,225 & up to £42,475. Plus 2% on profits above £42,475.
How does that tie in with personal allowance then?
Are you saying whatever your profits are (income minus personal allowance minus costs) you then are taxed at 20% of that. You then have a figure left and you subtract £7,225 from that and whatever is left you are taxed at 9% of that to work out your Class 4?
There is a small difference in the amounts of both income tax & NI allowances. As far as I know, the IT allowance is nothing to do with the Class 4 NI one.
So, (as far as I'm aware) class 4 NI is turnover minus expenses minus £7,225 then 9% of the figure which is left over.
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Thankyou, I appreciate that.
Happy Christmas to you ;D