NI Tax and Tax Credits!!!!

[sorrel]

Hi Guys

i have a few questions sbout tax and national ins :rolleyes:

first of all, on my icp course my tutor said that you could earn approx 14 - 15000 a year without paying tax because of all the expenses you can claim, it seem's an awful lot to earn without paying tax, i know that there is loads and loads you can claim against your tax but even still, so was wondering how much tax you guys roughly pay?

second of all, do i need to pay NI2 OR NI4 or both?

Last of all, i claim some tax credits, when it says how much is your self employed profit, do you put in the amount minus our expensess or not? it says on the from that it should only be minus what you put aside for tax and ni contributions, but i'm sure i saw on another thread that someone said you can.


any feedback would be fab as my head is going to spontaniously combust!!!!

[sarah707]

Hi Guys

i have a few questions sbout tax and national ins :rolleyes:

first of all, on my icp course my tutor said that you could earn approx 14 - 15000 a year without paying tax because of all the expenses you can claim, it seem's an awful lot to earn without paying tax, i know that there is loads and loads you can claim against your tax but even still, so was wondering how much tax you guys roughly pay?

The tax office expect a write off of somewhere between 1/2 and 2/3 to expenses for our job. We plough so much back in to the business, what with food, outings, house running costs etc.

second of all, do i need to pay NI2 OR NI4 or both?

I suggest you take advice from the pension service first and get a forecast. Then do whatever you think best. everyone is in a different situation.

Last of all, i claim some tax credits, when it says how much is your self employed profit, do you put in the amount minus our expensess or not? it says on the from that it should only be minus what you put aside for tax and ni contributions, but i'm sure i saw on another thread that someone said you can.


Income minus expenses is the figure you give tax credits

any feedback would be fab as my head is going to spontaniously combust!!!!

Hope this helps! :D

[TheBTeam]

Expenses can take in the region of 30-60% of your income, you can immediately deduct 10% of your income for wear and tear, so it is quite possible that you need not pay tax, after all expenses for toys, equipment, heat and light, council tax, outings, food and other equipment for your business. There is a good thread on this forum of things that you can claim.

You need to register to pay class 2 ni, which is £2.40 per week and then if you are liable to pay any tax you will also be liable for class 4 ni also at i think 10%.

The amount for tax credits is the amount of your profit, ie your income less your 10% and your expenses, to get your net profit, you can not claim NI or tax payments as expenses though.

Your local tax office will send out a small business adviser to your home to explain things to you if you contact them. One came out to me and was helpful.

HTH

[Chatterbox Childcare]

Expenses can take in the region of 30-60% of your income, you can immediately deduct 10% of your income for wear and tear, so it is quite possible that you need not pay tax, after all expenses for toys, equipment, heat and light, council tax, outings, food and other equipment for your business. There is a good thread on this forum of things that you can claim.

You need to register to pay class 2 ni, which is £2.40 per week and then if you are liable to pay any tax you will also be liable for class 4 ni also at i think 10%.

The amount for tax credits is the amount of your profit, ie your income less your 10% and your expenses, to get your net profit, you can not claim NI or tax payments as expenses though.

Your local tax office will send out a small business adviser to your home to explain things to you if you contact them. One came out to me and was helpful.

HTH

You have the option to opt out of Class 2 NI and get an exemption but the IR has these details