20-01-2013, 22:06
(20-01-2013, 21:59)friendly accountant Wrote:(20-01-2013, 21:50)curlytots Wrote: Hello,
A wee question, when it comes to NI contributions, I was looking on the HMRC website, and it breaks it down into a weekly basis.
if you earn between £107 and £146 you’re automatically covered for State Pension and benefits
12% on your weekly earnings between £146 and £817
2% on any weekly earnings over £817
What I want to ask is - do you break these earnings down as an average over the whole yearly weeks? i.e. Say you earned £45k, but some weeks you earned £1200, others maybe 650 etc. (So this would affect the percentages). Or do you say, well, 45k is divided by 52 (weeks in the year), so then your profits would be £865.38 on average?
Otherwise, it could end up being a totally different figure?
Sorry in advance if I'm not being clear!
EDIT: Or would it be a different figure?! Maths have never been my strong point, I'm a humanities girl... *shakes head*
xx
You need to look at Class 2 and Class 4 rates - the above numbers you quote are for employee/employer which are not applicable to self employed.
Class 2 is paid weekly, irrespective of profits.. class 4 is annual profits based.
Ohhhhhh ok! What a numpty I am, lol.
So, with regards being self employed, you take the annual figure as opposed to weekly profits?