Help!!!!!

[mookyjordan]

I've just done my tax return on line, not submitted yet though, and wasn't expecting it to be too bad. Only paid £157 last year. Although I've earnt quite a bit more this year, I wasn't expecting it to be horrendous. Well...IT IS!!!!! I feel sick. I've got a huge amount for Class 4 NICs on it. Help!! Anyone know anything about this? I need to ask if I can pay this monthly over the next year or something. Lord. And I've got ofsted coming in a week. I'm a stressed lady!!!!!
Any help or advice MUCH appreciated!

[Lick'le Oakes]

Hi, I got a book from the HM Revenue yesterday it says this :

Class 4 NICS are payable by most self-employed people. They are a percentage of your annual taxable profit from self-employment, but you only start paying class 4 when your profits reach a certain limit. You pay your contributions along with your income tax using the Self Assessment tax return. If you are self-employed you pay class 2 and/or class 4. There are thresholds for class 1 and class 4 NICS. Visit the website at www.hmrc.gov.uk/rates/nic.htm for details of the current threshold.

Don't know if this is any good to you and i don't know how to make that website into a link but i'm sure it would be worth checking out the threshold.

[mookyjordan]

Thank you!

I will have to ring them and see if I can pay monthly or be exempt! It's still confusing me, despite understanding the numbers. I don't want to pay it all at once, which is what they are asking me.

Thanks lots though.

[rickysmiths]

I know how you feel it happened to me last year. The killer is having 50% added on ready for next year. Even thought I was expecting a large bill seeing it on screen well I felt sick and my hubby went green!!!!!

All you can do I guess is double double check you have put in all your expences
down to the last toilet roll wet wipe etc. Have you claimed enough milage at 40p per mile? remember the trips to the shops to buy food and to the bank to pay in the cheques.

Also check you have taken off all your allowable %s

Insurance
council tax
heat and light
water rate
wear and tear

your NI can be reduced if you have low earnings but best check with the IV
about that. It may have info on their web site.

Good luck I hope this helps.

[mookyjordan]

Thanks SO much!

Yes I'm feeling ill and my hubbie isn't too pleased!!!

I will go through my expenses again. Think I can make them more. I'm not going to do the 40p/mile for the car but claim receipts instead. We bought the car for childminding, because I was getting busier and needed it. It's cost me loads! I need to claim it back! Not sure what % to do it at though.

Thanks again!
:)

[ruby]

not sure if this will help but if you car is for childminding only you could claim capitol allowance



i.e if your car's market value is £8,000 the capitol allowance in the first year is £8,000x25 per cent = £2,000.00. in the second year the balance of the car's market value is £8000-£2000= £6000. the capitol allowance for the second year is £6000X25per cent =£1500 and so on.

i would work out which one gives you the better deal mileage or capitol allowance.


cathy

[rickysmiths]

Thanks SO much!

Yes I'm feeling ill and my hubbie isn't too pleased!!!

I will go through my expenses again. Think I can make them more. I'm not going to do the 40p/mile for the car but claim receipts instead. We bought the car for childminding, because I was getting busier and needed it. It's cost me loads! I need to claim it back! Not sure what % to do it at though.

Thanks again!
:)

Aagin I check this one I bought a car too but my accountant said by the time you work out the amount for businss and home it is better for cm's to claim mileage. You can also claim for the interest on any loan you have on the car. It worked out better for me this way and I had bought a new car.