Self employed NIC

I'm not sure about this, but if your employment income exceeds the LEL (of £82 a week) you might not need to pay the £2 a week (actually £2.10 now) class 2 contributions. [If I'm right, that raises the question of whether in fact you're still required to register as self-employed.]

But yes you will certainly need to pay class 4 contributions if your self-employed (or share of partnership) profits exceed £4895 in the tax year 2005/6. You pay 8% of this excess, but if profits exceed £32760, then the excess above that is only taxed at 1%.

Just as there is a limit on class 1 NI from all employments, there may also be a personal NI ceiling on the sum of (the meaty part) of C1+C4.

There is an upper limit of the total NI paid when multiple employment/self employment is involved. If the total Class 1, Class 2 and Class 4 exceeds a certain figure, Class 4 can be rebated.

DF

Well, ever since the introduction of the top 1% rate there is no longer *any* upper limit, but we know what you mean.

You didn't clarify the bit I wasn't sure about. Are you saying class 2 is still payable even if class 1 is paid, or deemed paid by virtue of (at least one of) the employed income(s) exceeding the LEL?

Class 2 is always payable if one is Self Employed and exception has not been claimed, and a man is below 65 and a woman below 60 (until 5/4/10).

If at the end of the year the total of Class 1, Class 2 and Class 4 exceeds a certain limit (and there is an upper limit which has to be calculated in view of the 1% rate), then a rebate is due, in the order Class 4, Class 2, Class 1 (non contracted-out), Class 1 (contracted-out)

Since the introduction of the additional 1% rate for Class 1 and Class

If there is more than one employment then too much Class 1 can be paid. If there is is employment income and self-employment then the total of Class 1, Class 2 and Class 4 may be excessive. If most income is from employment but there is also self-employment then Class 2 may not be due.