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NI Confusion
Hello everyone.
I am going to ring the hmrc today but thought I would ask here first.
This week is my first week on childminding. I worked in a nursery until last Thursday.
I have been paying NI on my payslip from work.
I have one mindee for now paying about £430-480 a month.
I have another mindee in jan paying the same.
My question is, do I pal NI CLASS 2. As it stands right now I'm earning £5500 a yr but in jan I'll be earning £11,150 a yr there or there abouts?
should I pay the higher class 4 NI?
Thank you xx
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As a childminder you will be self employed and will need to be registered as such. I would check with the hmrc how this works in conjunction with being paye as well.
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Pay class 2 ni and then when you submit your tax return if you have made a profit (there is a minimum limit) then they will calculate the class 4 for you
Debbie
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Can we set up NI payments online? I am still in a nursery until tues then start childminding as of 1st Sept
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Originally Posted by
LizP
Hello everyone.
I am going to ring the hmrc today but thought I would ask here first.
This week is my first week on childminding. I worked in a nursery until last Thursday.
I have been paying NI on my payslip from work.
I have one mindee for now paying about £430-480 a month.
I have another mindee in jan paying the same.
My question is, do I pal NI CLASS 2. As it stands right now I'm earning £5500 a yr but in jan I'll be earning £11,150 a yr there or there abouts?
should I pay the higher class 4 NI?
Thank you xx
Here is the info you need...if you are now childminding you will be self employed...if still working at a nursery then check with HMRC
NI is your contributions towards a state pension and other benefits...keep paying them
You can set up a Direct Debit each month
This will help
HM Revenue & Customs: Self-employed tax and National Insurance
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If you've switched from being employed to self-employed, HMRC will do a pro-rata calculation and charge you accordingly.
They offer various payment options, including direct debit and online payments. I used to pay by cheque over the post office counter until I had a huge problem and ended up having to over-pay and it took about a year to sort out.
As a rule, all self-employed people pay class 2 and then start paying class 4 once profits reach a certain level. The figure/details should be in the link which Simona supplied.
There is a possibility of opting out of class 2 for up to 3 years under the "small earnings exemption" rule IIRC. You need to request this (in writing, I think). HMRC will give details, including the amount you're allowed to earn and still qualify for the exemption if you phone and ask them. However, you must consider carefully if this is something you ought to do. It looks good to save on NI for a time, but if your contributions are not up to date, you'll lose entitlement to various benefits/state pension/maternity pay, etc. etc. An accountant or financial adviser would be able to tell you more.
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