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Self employed tax and national insurance?
BillieTheBot
Posts: 8,721 Bot
in Work & Study
I have got another job but I'm thinking of quitting my new one so what I was saying about having two jobs weeks ago, forget it.
Well anyways, this job I've got, its basically where the money gets put into your own account but you have to pay out your own national insurance and tax payments. I have to do it either monthly or every three months apparently. I'm all so very confused. I mean, we get paid into our bank accounts and we get pay slips, why can't our tax and NI contributions be taken out as well? :yeees:
Well anyways, I'm not going to be at this job for long. I'm just going to have it I think until I finish uni for the year and I get a full time job for over the summer which is in about 10 weeks time.
I got told by my employer that I had to inform inland revenue so I could pay my tax and stuff but I'm a student? Will I still need to inform them even though I'm not liable to pay either tax or national insurance?
Well anyways, this job I've got, its basically where the money gets put into your own account but you have to pay out your own national insurance and tax payments. I have to do it either monthly or every three months apparently. I'm all so very confused. I mean, we get paid into our bank accounts and we get pay slips, why can't our tax and NI contributions be taken out as well? :yeees:
Well anyways, I'm not going to be at this job for long. I'm just going to have it I think until I finish uni for the year and I get a full time job for over the summer which is in about 10 weeks time.
I got told by my employer that I had to inform inland revenue so I could pay my tax and stuff but I'm a student? Will I still need to inform them even though I'm not liable to pay either tax or national insurance?
Beep boop. I'm a bot.
0
Comments
Being a student does not exempt you from income tax and NI.
They obviously haven't read TheSite's article
Here's the low down on tax Stacey which covers students
cause they will have your tax code wrong, they probly have you on basic rate by accident
They won't know your tax code, so you will be on the "emergency" tax code, which is a flat 22%.
You'll get it back when things get sorted.
The national insurance thing you mentioned refers to class 2 NIC, which the self employed pay. It's a fixed rate of £2.10 a week for every week of self employment. You can pay this by monthly direct debit, or quarterly on a paper bill.
Although you are probably below the tax / NI thresholds, techically you should have registered for self employment and kept accounts so your income can be properly assessed.
Did you complete a P46 or hand in your last P45?
If not then the employer has to slap you on 22% until they receive an alternative tax code.
It's too late in the tax year to put it straight immediately, but send your 2005/2006 P60 from that employer to your tax office when you get it, and put in a covering letter listing all your employments during the 2005/2006 tax year. If the tax office need anymore information they will write to you.
Hope that helps