Class 4 NI upper profits limit
If you are self employed and employed in the same year, does your employment income count towards the class 4 NI upper profits limit?
As an example, if you made £40k from employment, and £40k from self employment, would you pay 8% or 1% class 4 NI on most of the self employment? |
You'll pay 8% Class 4 only on your self-employed profits.
This may help you - http://www.nidirect.gov.uk/index/inf...-insurance.htm http://www.nidirect.gov.uk/index/inf...ed-example.htm |
What I'm not clear on though is whether employed earnings affect when you drop from 8 to 1% class 4. The effective tax rate on marginal income from self employment is either 48 or 41% which is a difference that influences whether you might take on extra work.
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It does seem like you pay 8% until your self employed earnings reach the upper profits limit, irrespective of what employed earnings are.
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