class 4 NI ?

[loocyloo]

hello!

just making use of a totally child free day to do 09/10's accounts! well - all the adding up! (each year i promise i'm going to do it weekly or at least monthly ... still not happening!)

anyway, it looks like i am going to have made a healthy profit this year, and will probably have to pay some tax! last year i only had to pay £35.

i've been reading about needing to pay class 4 NI if you earn over a set amount ... will i get a letter (or email as i will submit online) telling me how much to pay? or do i have to work it out myself?

oh, and what percentage tax do we have to pay on income over our personal allowance? i've read it somewhere, but can't remember!

thank you!
xxx

[sarah707]

I'm no NI expert... but I know you pay a flat rate of 20% tax on everything over your personal allowance

[Chatterbox Childcare]

When you complete your return online they will tell you the amount to pay in tax and NI. I believe the NI threshold is £5715 this year and any profit over this will be taxed at 8%.

If you total tax and NI bill comes to more than £1000 then you will pay all of the amount by 31.01.11 and 50% again on 31.01.11 and then by 31.07.11. This means the amount of tax paid for 09/10 will be prepaid for 10/11.

[loocyloo]

thank you ladies!

x